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  1. Asked: April 3, 2022In: Class 12 Economics

    Define High powered Money?

    Simrantaneja
    Added an answer on April 3, 2022 at 6:23 am

    High powered money or monetary base refers to the money produced by Reserve Bank of India or Government of India. In other terms. Total Liability of monetary authority of the country and R.B.I is called High powered money or monetary base of the country. It consist of (i) currency (notes and coins)Read more

    High powered money or monetary base refers to the money produced by Reserve Bank of India or Government of India.
    In other terms. Total Liability of monetary authority of the country and R.B.I is called High powered money or monetary base of the country.

    It consist of (i) currency (notes and coins) in the hands of public(C)

    (ii) Cash reserve of commercial banks ( R )

    (iii) Other deposits with R.B.I. (O D).
    Formula = H = C + R + OD

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