Method Used By The Central Bank To Control The Credit Creation By The Commercial Bank?


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Anonymous Profile
Anonymous answered
Explain the different method of credit creation?
grant nickless Profile
grant nickless answered
Primarily through interest rates, but also through ability to pay which means the ration  of income to expenses must show there is more coming in than going out. This is largely a creature of statute ---although in Canada, the payday loan crowd convinced the legislatures to ignor this basic principle and become legal loan sharks

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