How does credit expansion help economic growth

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Reference no: EM13924763

1. How does credit expansion help economic growth? Please elaborate.

2. One of your friends says that ‘all economic growth involves credit expansion; however all credit expansion may not involve economic growth'. Do you agree with this view? Please elaborate.

3. Why is confidence in the banking system of the utmost importance for the smooth functioning of the economy?

4. Explain why banks and financial intermediaries rely on retail deposits and the inter-bank money market as funding sources.

Reference no: EM13924763

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