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Which entity controls and influences credit creation by commercial banks?
- a)Depositors
- b)Central bank
- c)Government
- d)Borrowers
Correct answer is option 'B'. Can you explain this answer?
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Which entity controls and influences credit creation by commercial ban...
The text states that credit creation by commercial banks is controlled by the central bank. The central bank, such as the Reserve Bank of India (RBI), has the authority to regulate and influence the credit creation process. It uses various methods of credit control to manage the money supply in the economy, including adjusting the cash reserve ratio and implementing monetary policy measures.Interesting additional fact: The central bank plays a crucial role in maintaining financial stability and managing economic growth. By controlling credit creation, the central bank can mitigate the risks of excessive lending, inflation, and financial instability. It acts as a regulator and supervisor of the banking system to ensure the smooth functioning of credit creation and the overall economy.
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Which entity controls and influences credit creation by commercial banks?a)Depositorsb)Central bankc)Governmentd)BorrowersCorrect answer is option 'B'. Can you explain this answer?
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Which entity controls and influences credit creation by commercial banks?a)Depositorsb)Central bankc)Governmentd)BorrowersCorrect answer is option 'B'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Which entity controls and influences credit creation by commercial banks?a)Depositorsb)Central bankc)Governmentd)BorrowersCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which entity controls and influences credit creation by commercial banks?a)Depositorsb)Central bankc)Governmentd)BorrowersCorrect answer is option 'B'. Can you explain this answer?.
Which entity controls and influences credit creation by commercial banks?a)Depositorsb)Central bankc)Governmentd)BorrowersCorrect answer is option 'B'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Which entity controls and influences credit creation by commercial banks?a)Depositorsb)Central bankc)Governmentd)BorrowersCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which entity controls and influences credit creation by commercial banks?a)Depositorsb)Central bankc)Governmentd)BorrowersCorrect answer is option 'B'. Can you explain this answer?.
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