Credit creation by banks means

banks printing currency notesCorrect answerYour answerbanks creating deposits several times their reserves by lendingCorrect answerYour answerbanks giving credit cards onlyCorrect answerYour answerthe RBI giving loans to the governmentCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

Loans become deposits, which support more loans, so deposits grow to a multiple of reserves.

Concept: Credit creation
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsDeposit creation, round by round

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Credit creation by banks means

Explanation