Question

_______ function is not performed by commercial banks.

• A. Credit control
• B. Lending
• C. Borrowing
• D. Credit creation

Answer 1

The correct option is A Credit control

Credit control refers to the regulation of the creation of credit by the commercial banks in order to regulate the money supply to control the situation of inflation or deflation in the economy. The credit control function is performed by the central bank with the help of some quantitative measures which includes many instruments that control the creation of credit by the commercial banks.

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