Money Creation or Credit Creation by Commercial Banks – Class XII (12) (in Hindi)



This video explains the process of creating credit money by commercial banks. This will be helpful to Class XII – Economics students in the study of chapter on Money and Banking in Macroeconomics.

This video also explains the concepts of Money Multiplier and effect of Legal Reserve Ratio (LRR) on LRR and amount of money or credit that can be created.

Central Bank
Legal Reserve Ratio
Credit Creation
Money Creation
How banks create money?
Commercial Banks
Macroeconomics
Deposits
Loans
Functions of Commercial Banks

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