Credit creation is a . . . . . . . . of a bank.

primary function
agency function
general utility function
None of these

The correct answer is: A. primary function.

Credit creation is the process by which banks create new money by lending money out. When a bank lends money, it does not actually give the borrower the money that it has on deposit. Instead, it creates a new deposit in the borrower’s account. This new deposit is then available for the borrower to spend, and it can be used to make new loans.

Credit creation is a key function of banks, and it allows them to play a vital role in the economy. By lending money, banks help to finance businesses and individuals, and they help to stimulate economic growth.

Agency function is a secondary function of a bank. It refers to the role of a bank as an agent for its customers. Banks act as agents for their customers in a number of ways, including by holding their money, investing their money, and providing them with financial advice.

General utility function is a function that is not specific to banks. It refers to the role of a bank as a provider of general utility services. Banks provide a number of general utility services, including by providing ATMs, online banking, and mobile banking.

None of these is the correct answer.

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