Consider the following statements:

  1. Indian Commercial Banks run on the Unit Banking System
  2. Expansion and contraction of deposits by the Commercial Banks means expansion and contraction of money in the country

Which among the above statements is / are correct?

[A] Only 1 is correct
[B] Only 2 is correct
[C] Both 1 & 2 are correct
[D] Neither 1 nor 2 is correct

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This question is part of UPSC Prelims Practice and Mock Tests membership programme.