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Answer : 1. "Reserve Bank of India"
Bywhom controls the credit generated by commercial banks?
5Q:
Bywhom controls the credit generated by commercial banks?
- 1Reserve Bank of Indiatrue
- 2Government of Indiafalse
- 3State Bank of Indiafalse
- 4Ministry of Financefalse
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Answer : 1. "Reserve Bank of India"
Explanation :
During the period of inflation Reserve Bank of India tightens its policies to restrict the supply of money while during deflation it allows commercial bank to pump money into the economy.