Contents
Introduction- Role of Commercial Bank
- Objectives of banks and its customers and the problems faced due to its differences
- Creation of Money and deposits
- Limitations to Credit Creation by Bank
- Conclusion & Recommendations
- References
Description
This essay provides answers to the following questions –
1. Discuss the different roles played by commercial banks in an economy.
2. Analyse the problems caused by different objectives which face both individual customers and the commercial banks.
3. Use appropriate and detailed example where appropriate, critically evaluate the capacity of commercial banks to create and destroy money and deposits in the financial system and the economy.
4. Discuss the limitations on the credit creating power of the commercial banks.
