Advertisements
Advertisements
प्रश्न
Why are commercial banks called producers (creators) of money? Explain.
थोडक्यात उत्तर
Advertisements
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.
shaalaa.com
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
