Commercial banks do not contribute to quantum of money supply in the economy as they do not have note-issuing authority.

True

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False

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Solution

The correct option is B False
Commercial banks contribute to quantum of money supply in the economy through credit creation.

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Similar questions

Commercial banks do not have the note-issuing authority, but they do contribute to the money supply in the economy. Comment.

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

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