What is the process through which banks create money? Option 1: Fractional reserve banking. Option 2: Credit creation. Option 3: Monetary policy. Option 4: Reserve Management.

The answer is 'Credit creation.'. View full solution:

CUET Economics - What is the process through which banks create money? | PYQs + Solutions

CUET Economics 2025 29 May Shift 1

Macro

Medium

Fractional reserve banking.

Credit creation.

Monetary policy.

Reserve Management.

✅ Correct Option: 2