Credit Creation | Class 12th | Economics | Chapter 6 BANKING | CBSE | 2025 - 26 | #fukeyeducation

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Credit Creation | Class 12th | Economics | Chapter 6 BANKING | CBSE | 2025 - 26 | #fukeyeducation #economics #class12 #video #online

Introduction

Commercial banks play a major role in the modern economy by creating credit, which increases the total money supply. Credit creation is the process through which banks multiply deposits and generate loans, expanding the money supply far beyond the initial cash deposits.

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