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प्रश्न
The process of money creation or credit creation is done by ______.
पर्याय
World bank
Central bank
Rural bank
Commercial banks
MCQ
रिकाम्या जागा भरा
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उत्तर
The process of money creation or credit creation is done by Commercial banks.
Explanation:-
Commercial banks can use the LRR (Legal Reserve Ratio) to maintain a portion of their deposits as a reserve and use the balance to extend credit. The cycle of transactions that occurs during this phase aids in the creation of money.
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