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Commercial banks do not have the authority to issue currency but they do contribute to the money supply in the economy. Comment

Dear


Credit creation is basically giving loans. It is commercial banks that give loans to the general public and not central bank. So it is commercial banks that create credit. It has nothing to do with issuance of currency

Hope it regards....
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Commercial banks do not actually issue currency but they create money through credit creation. Credit creation is a process by which banks are able to multiply the initial deposits several times their value.
They do not provide physical money rather transfer into bank accounts which can be drawn via cheques.
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