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Home/ Questions/Q 189133
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Lakshmanyadav
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Lakshmanyadav
Asked: April 3, 20222022-04-03T05:56:03+00:00 2022-04-03T05:56:03+00:00In: Class 12 Economics

Define High powered Money?

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All the people suggest knowing the key concept in economics but understanding the difference in Money from the Determination of Income and Employment from the NCERT solution for class 12 is not easy. Are there people facing the same issue?

class 12 economicsmacro economics class 12
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      Simrantaneja
      2022-04-03T06:23:14+00:00Added 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) 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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