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Fill in the Blank with Appropriate Alternatives Given in the Bracket : Commercial Banks Create __________. - Economics

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Question

 Fill in the blank with appropriate alternatives given in the bracket :

 Commercial banks create __________. 

Options

  • 1.paper money 

  • 2.metallic money 

  • 3.commodity money 

  • 4.credit money

MCQ

Solution

Commercial banks create credit money.
Explanation:
The commercial banks create credit in the economy through demand deposits. Credit creation paves the path for the growth of the economy.

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2010-2011 (March)

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