A commercial bank is a trader and creator of money.

True

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

False

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A True
True.
A commercial bank is a financial institution which accepts deposit from people and offers loan for the purpose of consumption or investment. The main function of the commercial bank is to create credit through the primary deposits which it receives from the public in order to provide more credit to the public. Therefore, commercial bank is known as the trader and creator of money.

Suggest Corrections

Similar questions

Do you consider a commercial bank ‘creator of money’ in the economy’?

Do you consider a commercial bank to be a "creator of money' in the economy?

What is a commercial bank? Explain various types of accounts with commercial banks.

What is central bank? Explain any three quantitative measures to control the money supply in the market.

Join BYJU'S Learning Program