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प्रश्न
Why are commercial banks called producers (creators) of money? Explain.
संक्षेप में उत्तर
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उत्तर
Commercial banks add to the total money supply of the country. They create money on the basis of creation of demand deposits. Thus, by expanding demand deposits, they contribute to the country's supply of money. It is due to this reason, commercial banks are called producers (creators) of money.
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