Creation of derivative deposit out of the money from primary deposit is called---------------------
A)Cash credit
B)Lending money
C)Credit creation
D)Loan and advances

Question

Quizplus · Accepted Answer

Credit creation is the process by which banks generate new deposits or credit through lending money that has been deposited with them. This process effectively multiplies the initial deposits, creating more money in the economy.

Creation of Derivative Deposit Out of the Money from Primary