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Doctors Medicines MCQs Q&A

  1. A, D and E only
  2. A, C and E only
  3. C and D only
  4. D and E only
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Option 4 : D and E only

The correct answer is D and E only

Commercial Banks - A commercial bank is a type of financial organisation that handles all transactions involving public money deposits and withdrawals, lending money for investments, and other similar activities. These banks are for-profit organisations that operate solely for financial gain.

Credit Creation: Credit creation is the process by which commercial banks are able to create loans in the form of new deposits.

Allied deposits scheme and Deposits linked with special benefits tend to reduce the capacity of the commercial to create credit since, the amount invested in these schemes is generally used by banks to provide special attached benefits and credit creation is low.

Hence, Allied deposits scheme and Deposits linked with special benefits are the limitations of Credit Creation.

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