Credit Creation

Chequable deposits are also known as ____________________.

• secondary deposits

• currency deposits

• near money.

• demand deposit.

Which function of central bank helps to settle the inter banking claims that is cheques:-

• Lender of last resort

• Custodian of foreign exchange

• Clearing house

• Controller of credit

How commercial bank contributes towards money supply?

• Accepting term deposits

• Credit creation

• By providing locker facilities

• none of the above

The deposits of public in form of cash and cheques are called

• secondary deposits

• Derivative deposits

• Primary deposits

• None of the above

If CRR is 12.5% than the money multiplier will be:-

• 4 times

• 8 times

• 5 times

• None of the these

Higher the CRR , more will be the credit creation

• True

• False

• Can’t say

The credit creation capacity of commercial bank can be increased by decreasing CRR

• True

• False

• Can’t say

If money multiplier is 20 times, then what will be CRR

• 10%

• 5%

• 8%

• None of these