12th Class Economics Money And Banking Question Bank MCQs - Money and Banking

  • question_answer
    Credit creation depends on ......... .

    A) Initial level of deposit

    B) Money multiplier

    C) Both [a] and [b]

    D) None of the above

    Correct Answer: C

    Solution :

    Credit creation process depends upon the amount of initial deposits and legal reserve ratio which impact the credit multiplier.


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