Multiple Choice Questions on Credit Creation by commercial banks is determined by ........ for Economics ( 11th and 12th ) Preparation

Money and banking

Introductory Macro Economics

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Indian Economy - Understanding the basics of Indian economic system

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    Credit Creation by commercial banks is determined by:-

    Cash Reserve Ratio (CRR)

    Incorrect Answer

    Statutory Liquidity Ratio (SLR)

    Incorrect Answer

    Initial deposits

    Incorrect Answer

    All of the above

    Correct Answer
    Explanation:

    Credit creation by commercial bank depends upon the initial deposits and LRR. LRR consists of SLR and CRR.


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