हिंदी

What is the unique process where banks multiply money beyond original deposits through lending?

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प्रश्न

What is the unique process where banks multiply money beyond original deposits through lending?

विकल्प

  • Cheque system

  • Credit creation

  • Fund transfer

  • Safe deposit

MCQ
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उत्तर

Credit creation

Explanation: 

Banks keep reserves (CRR) and lend the rest; re-deposits allow repeated lending, expanding the money supply.

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