Credit Creation by Commercial Banks - Money and Banking | Class 12 Macroeconomics 2022-23

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What is credit allocation policy of commercial banks?? Are they same??

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[@salilrichardxess4226]

Thank mam for this explanation...but i have a doubt.... If the initial deposit is 10000 and LRR is 20% Then the total money creation is 50000 The difference between Mone created and initial deposit is 40k Is this the 40 k is profit of bank....??? Please clear my doubt

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17:26

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0:08

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Get Notes Here:- www.pabbly.com/out/magnet-brains Previous Video : Functions Of A Commercial Bank - Money And Banking -kzbin.info/www/bejne/rqHQoXRqfN-paK8 Next Video : Meaning And Function Of Central Bank - Money And Banking - kzbin.info/www/bejne/a52apGN_gp5sq9E

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Which bank keeps SLR ? Commercial or central?

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Commercial keeps SLR but the central bank has the authority to vary this ratio to either increase the credit or decrease the credit

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Commercial

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