In the situation of inflation credit creation by commercial bank is be

1.	In the situation of inflation credit creation by commercial bank is beneficial for the bank but it explain its negative impact on economy.
Answer» Money creation by commercial bank in the condition of rising prices increases money supply. It creates the situation of excess demand and consequently again increases the price level. Value: Analytic.

In the situation of inflation credit creation by commercial bank is beneficial for the bank but it explain its negative impact on economy.

Answer»

Money creation by commercial bank in the condition of rising prices increases money supply. It creates the situation of excess demand and consequently again increases the price level.

Value: Analytic.

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In the situation of inflation credit creation by commercial bank is beneficial for the bank but it explain its negative impact on economy.

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