Advertisements
Advertisements
Question
Credit money is created by the Central bank of a country.
Solution
False, credit money is not created by the central bank of a country.
Explanation:
It is not the central bank but in fact, the commercial banks that create credit in the economy through demand deposits. Credit creation paves the path for the growth of the economy.
APPEARS IN
RELATED QUESTIONS
Give reasons or explain the following
Central bank acts as a lender of the last resort of commercial banks.
Answer in detail.
Explain the functions of Central Bank.
Choose the correct answer :
Currency rate of India to other currency means _________.
Fill in the blank with appropriate alternatives given below
Central bank has the __________ of note issue.
Fill in the blank with appropriate alternatives given below
The central bank acts as a ____________ of cash reserves of the country.
Define or Explain the following concept.
Central Bank as Bank of Issue
Answer the following question:
How does a Central Bank (for example RBI) transfer funds from one place to another? Illustrate.
State with reason whether you agree or disagree with the following statement.
Central Bank is the Bank of Issue.
State with reason whether you agree or disagree with the following statement.
Central Bank having monopoly of note issue is most appropriate institute of the government.
Give reason or explain the following.
Clearing house facility by central bank Economises the use of cash.
