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MA
Question Practice

Which statement best describes the role of commercial banks in money creation?

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

Which statement best describes...

Single Answer MCQ
Q-00089058

Which statement best describes the role of commercial banks in money creation?

1

They destroy existing money.

2

They only act as safekeepers of money.

3

They create money through lending.

4

They fund government spending directly.

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