Loans offered by commercial banks are equal to deposits received by them.

True

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False

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Solution

The correct option is B False
Through the function of money creation, commercial banks are able to offer loans (or create credit), which are in far excess of deposits received.

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Similar questions

6. What are Green Bonds?

i) Green bonds specifies the purpose for raising the capital.

ii) Green bonds typically carry a lower interest rate than the loans offered by the commercial banks.

Which of the above statements is /are correct?

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