Advertisements
Advertisements
Question
What are secondary (derivative) deposits?
Advertisements
Solution
Secondary or derivative deposits refer to those deposits which arise when the bank transfers the loan amount to the borrower's accounts.
RELATED QUESTIONS
Answer the following question.
What role does it play in determining the credit creation power of the banking system? Use a numerical illustration to explain.
Answer the following question.
Explain, using a numerical example, how a reduction in reserve deposit ratio, affects the credit creation power of the banking system.
Define Credit Multiplier.
Identify which of the following Statement is true?
Credit money is increased when CRR:
To ensure that the citizens of the country have faith in the currency, the currency is issued by:
What is meant by credit creation?
How money multiplier is related to Legal Reserve Ratio?
Why are the banks required to keep only a fraction of deposits as cash reserves?
The key assumption for perfect credit creation is ______.
