Get the answer of: Do Banks Create Credit? There have been two views on this subject: one held by certain economists like Hartley Withers, and the other held by practical bankers like Walter Leaf. According to Withers, banks can create credit by opening a deposit, every time they advance a loan. This is because every […]
Do Banks Create Credit? Answered!
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Methods of Credit Control by Central Bank: 4 Methods
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The following points highlight the top four methods of credit control adopted by Central bank. The methods are: 1. Bank Rate or Discount Rate Policy 2. Open Market Operations 3. Variable Reserve Ratio 4. Selective Credit Controls. Method # 1. Bank Rate or Discount Rate Policy: The bank rate or the discount rate is the […]
Index Numbers: Meaning, Construction and Uses | Money
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In this article we will discuss about:- 1. Meaning of Index Numbers 2. Methods of Construction of Index Number 3. Difficulties in the Construction of Index Numbers 4. Uses. Meaning of Index Numbers: An index number is a statistical derive to measure changes in the value of money. It is a number which represents the […]