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प्रश्न
What is high-powered money?
What is meant by high-powered money?
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उत्तर १
High-powered money is the total liability of the monetary authority of the country. This is also called the monetary base and is created by the RBI. High-powered money includes currency (notes and coins), deposits with the government, and reserves of commercial banks with the RBI. So, to sum up, high-powered money is
H = C + R
Where
H − High-powered money
C − Currency
R − Cash Reserves of commercial banks
उत्तर २
The currency produced by the central bank (Reserve Bank of India and government of India in India) is called high-powered money.
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संबंधित प्रश्न
Supply of money refers to quantity of money ______.
The quantum of transactions depends on which factor?
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Besides income (transactions), demand for money also depends on the what?
In a modern economy, money consists of which two components?
What is India's central bank?
Which institution issues the country's currency?
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Which function identifies the RBI's relationship with the Government?
What is another name for the currency issued by the RBI?
Which expression correctly states the Spread?
Commercial banks act as what between savers and borrowers?
Why do people deposit money in banks?
