Kerala

Karnataka

Assam

Gujarat

A bank creates money when it writes a higher number against the deposit of a depositor who wants an advance

A bank creates money when it buys securities

Unless the authorities intervened, there is no limit to how much money banks would be willing to create

The increase in deposits that can occur when banks get ’1 million extra reserves is greater than ’1 million.

Both 1 and 2

1 only.

2 only

Neither 1 nor 2