Answer :

High powered money refers to the money produced by RBI and government of India. It can also be defined as the total liability of monetary authority of the country and RBI.

It consists of –


-Currency in hands of public


-Cash reserve of commercial banks


-Other deposits with RBI


H = C + R


Where


H is high powered money


C is currency and


R is cash reserves with commercial banks


High powered money is also called monetary base


Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
caricature
view all courses
RELATED QUESTIONS :

Explain how 'ReveEconomics - Board Papers

Explain the role Economics - Board Papers

Explain howEconomics - Board Papers

Explain theEconomics - Board Papers