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ZIMSEC A-Level Economics

10.3Credit creation

Credit creation in ZIMSEC A-Level Economics: what the syllabus expects you to know, the learning objectives and how to practise.
Subtopic23 practice questions1 lesson

Learning objectives

What the syllabus expects you to be able to do.

  1. 10.3.1Illustrate how banks create money and calculate the money multiplier.
  2. 10.3.2Discuss the impact of credit creation in an economy.

Lessons

  • Credit creation and the bank credit multiplier

    55 min

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Sample question

A sample question on this topic. Answer it, check it, then read the worked answer.

Credit creation: sample question

1 mark

Fractional reserve banking means that banks

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