Which of the following limits the credit creation of Commercial Banks?
A. Fixed and Demand Deposit
B. Debts
C. Reserves with Central Bank
D. Cash in hand
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2 marksMacroeconomicsMoney supply and the banking multiplierBanking and credit creationModerateabout 1 min
UGC-NET 2026 Question 20: Money supply and the banking multiplier
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Money supply and the banking multiplier has come up 74 times in 7 exams since 2005.
What this question tests
This question is on Banking and credit creation, part of Money supply and the banking multiplier in Macroeconomics.
How fractional-reserve banks create deposits and what limits them.
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