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Match List-I with List-II

List-IList-II
(A) Assets(I) Create Credit
(B) Liabilities(II) Firm Owes to others
(C) Central Bank(III) Control Credit
(D) Commercial Banks(IV) Firm can Claim from others

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 1

Option 1: (A) - (IV), (B) - (II), (C) - (III), (D) - (I) -> Assets represent resources owned by a firm or amounts that can be claimed from others (debtors, receivables). Liabilities are obligations that a firm owes to creditors, suppliers, or lenders. The Central Bank (like RBI in India or Federal Reserve in USA) controls credit through monetary policy tools like repo rate, CRR, SLR, etc. Commercial Banks create credit through the credit multiplier process by accepting deposits and making loans, thereby increasing the money supply in the economy. -> correct

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