Kalpana said that Commercial Bank is the controller of credit Geeta said that the Central ...........

Introductory Macro Economics Money and banking

Kalpana said that Commercial Bank is the controller of credit. Geeta said that the Central Bank is the controller of credit. Bobby said that both the commercial bank and the Central Bank are the controller of credit. Who among them are not correct?

Kalpana and Geeta

Kalpana and Bobby

Geeta and Bobby

Only Geeta

Explanation:

Option (2) is correct.
Explanation: Only Geeta is correct Central Bank is only the controller of credit and not the Commercial bank. The commercial banks only create credit. Credit control and control of money supply is probably the most important function of a Central Bank. Through various methods/instruments of credit control the Central Bank aims to achieve growth with
stability in an economy.

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