A commercial bank can create money by

Home » Past Questions » Economics » Jamb » 2015 » A commercial bank can create money by
Economics JAMB 2015

A commercial bank can create money by

  • issuing currency
  • increasing cash ratio
  • issuing cheque
  • lending to borrowers checkmark

The correct answer is: D

Explanation

lending to borrowers in form of loan with an interest rate makes the commercial bank to create more money.
Previous Question Next Question

Leave A Comment