Question

 Fill in the blank with appropriate alternatives given in the bracket :

 Commercial banks create __________. 

Options

• 1.paper money 

• 2.metallic money 

• 3.commodity money 

• 4.credit money

Answer 1

Commercial banks create credit money.
Explanation:
The commercial banks create credit in the economy through demand deposits. Credit creation paves the path for the growth of the economy.