Advertisements
Advertisements
Question
Poor banking habits limit credit creation by ______.
Options
Increasing digital transfers
Causing cash leakage from banks
Raising public confidence
Lowering collateral needs
MCQ
Fill in the Blanks
Advertisements
Solution
Poor banking habits limit credit creation by causing cash leakage from banks.
Explanation:
Preference for physical cash reduces redeposits, breaking the multiplier chain.
shaalaa.com
Is there an error in this question or solution?
