Loans offered by commercial banks are equal to deposits received by them

False,

Through the function of money creation, commercial banks are able to offer loans (or create credit), which are in far excess of deposits received

Explanation:-

Loans offered are for more excess than the initial deposits.

It depends on the initial deposits and LRR.

Total Credit Creation = Initial Deposits × 1/LRR

For Example:-

Initial Deposits = ₹ 1,000

LRR = 10% = 0.1

Total Credit Creation = 1,000 × 1/0.1

Total Credit Creation = ₹ 10,000

Thus, loans offered are 10 times more than the deposits.