Process of credit creation by commercial banks comes to an end when _____
Mukesh Sharma December 15, 2021
CBSE Class 12 Economics Exam, Question: Process of credit creation by commercial banks comes to an end when _____ (Fill up the blank with correct alternative)
(a) Fresh deposits with Banks become zero.
(b) Reserve Ratio become zero.
(c) Money multiplier becomes zero.
(d) Total money reserves become equals to initial deposit.
The answer is (d) Total money reserves become equals to initial deposit.
The process of credit creation by commercial banks comes to an end when total money reserves become equals to initial deposit
