Question : When the credit creation capacity of the commercial banks is likely to fall ?
Option 1: When the central bank sells securities in the market,
Option 2: When the commercial bank sells securities in the market,
Option 3: When the Local bank sells securities in the market,
Option 4: All of the above.
Answer (1)
10th Jan, 2024
Correct Answer:
When the central bank sells securities in the market,
Solution :
When the central bank sells securities in the market, the credit creation capacity of the commercial banks is likely to fall
Hence option A is correct.
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