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MA
Question Practice

What is the primary method by which banks create money?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Economics
Introductory Macroeconomics
Money And Banking
Question Bank

What is the primary method by ...

Single Answer MCQ
Q-00089034

What is the primary method by which banks create money?

1

By issuing new currency notes

2

By lending a portion of deposits

3

By selling government bonds

4

By receiving foreign investments

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Keep Practising

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What determines the demand for money in an economy?

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Q4.

Why is money considered a better method of exchange than barter?

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