Question

 State whether the following statements are TRUE or FALSE:   

Commercial banks play an important role in economic development. 

Answer 1

True, commercial banks play an important role in economic development.
Explanation:
By channelizing the surplus money from the public to loan seekers, the commercial banks create credit in the economy. Credit creation paves the path for the growth of the economy. Also, commercial banks play an important role in controlling money supply in the economy. Thus, commercial banks play an essential role in economic development.