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Land utilisation

  LAND UTILIZATION  Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of physical and
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CREDIT CREATION

MEANING Of CREDIT CREATION

A bank differs from other financial institutions because it can create credit.Banks have the ability to expand their demand deposits as a multiple of their cash reserves. Multiple expansion of deposits is called credit creation .

Bank credit means bank loans and advances ,a bank keeps a certain .The bank loan is not paid directly to borrower but is only credited in his account. Every bank loan creates an equivalent deposit in the Bank. Thus,credit creation means multiple expansion of Bank deposits.
Creation refers to the ability of the Bank to expand deposits as a multiple of its reserves.

To conclude, Credit creation refers to the unique power of banks to multiply loans and advances, and hence deposits through the process of making loans or investment in securities. The banks create additional purchasing power with just a little cash in hand.

 Basic concepts

a)Bank deposits : This forms the basis of credit creation. It is of two types :
-Primary deposits :-When bank accepts Cash from tHe customers and Opens a bank account ,it is called as primary account.
The deposits in primary account simply converts currency money into deposit money .

-Secondary deposits :-When a bank grants loans and advances ,instead of giving cash to borrower ,opens a deposit account ,it is called as secondary deposits .Every loan creates a deposit. Creation of derivative deposit means creation of credit. 

b)Cash reserve ratio :The bank keeps a fraction of total deposits for meeting the cash demand of depositors and lend out remaining excess deposits. The percentage of total deposits which banks are required to hold in cash reserves reserves for meeting the depositors demand is called Cash reserve ration or CRR.

c)Excess reserves :The reserves that a bank holds above the required cash reserves are called excess reserves . It is reserves out of which the loans are granted and thereby credit is created.

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