ICSE BoardEnglish MediumSTD 10EconomicsCommercial Banks1 Mark
Question
What is credit (or money) creation?
✓
Answer
Credit creation refers to the creation of demand deposits by banks in process of making loans. It signifies that power of commercial banks by which they create derivative deposits on the basis of primary deposits.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.