1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

# Q. Consider the following: Which of the above form a part of high-powered money?

A
1 and 2 only
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
1, 3 and 4 only
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
3 and 4 only
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
1, 2, 3 and 4
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

## The correct option is A 1 and 2 onlyExplanation: High-powered money is M0. It consists of Currency in Circulation + banker’s deposit & other deposits with the RBI. Notes: M0 = Currency in Circulation + banker’s deposit & other deposits with RBI. M1 = Currency held by the public + demand deposits with the banks + other deposits held by some people with RBI. M2 = M1 + Post-Office Savings deposits M3 = M1 + Time Deposits with the banks M4 = M3 + Post office savings deposits

Suggest Corrections
0
Join BYJU'S Learning Program
Related Videos
Comparison of a Number Using Charts_tackle
MATHEMATICS
Watch in App
Explore more
Join BYJU'S Learning Program