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Credit Creation by Commercial bank/Indian Economy/ DRSNSRCAS
Автор: dineshadith2015
Загружено: 2025-05-01
Просмотров: 5
Описание:
Commercial banks create credit by extending loans and purchasing securities using deposits received from the public. This process involves the banks creating new deposits (credit) when a loan is granted, essentially expanding the money supply. The initial deposit, combined with the legal reserve ratio (the amount banks must keep in reserve), determines the total amount of credit that can be created.
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