Question

Kalpana said that Commercial Bank is the controller of credit. Geeta said that the Central Bank is the controller of credit. Bobby said that both the commercial bank and the Central Bank are the controller of credit. Who among them is not correct?

Options

• Kalpana and Geeta

• Kalpana and Bobby

• Geeta and Bobby

• Only Geeta

Answer 1

Kalpana and Bobby

Explanation:

Only Geeta is correct because the Central Bank is only a credit controller and commercial banks only create credit. The most important function of a central bank is probably credit control and money supply control. The Central Bank aims to achieve economic growth while maintaining stability through various credit control methods/instruments.