wiz-icon
MyQuestionIcon
MyQuestionIcon
3
You visited us 3 times! Enjoying our articles? Unlock Full Access!
Question

High powered money consists of _________________.

A
Currency and coins held by the public
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Currency, cash reserves with banks and demand deposits
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C
Currency held by public and cash reserves with banks
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
Currency and demand deposits
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B Currency, cash reserves with banks and demand deposits
High powered money consists of currency and coins held by the public and deposits held by government and commercial banks. High powered money is a total liability of the monetary authority of the country.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Sources of Finance I
BUSINESS STUDIES
Watch in App
Join BYJU'S Learning Program
CrossIcon