High powered money (M0 or reserve money) = Currency (notes and coins) in circulation with the public + Vault cash of commercial banks + Deposits held by the Government and commercial banks with the RBI. Option A captures all these components.
High powered money comprises of :
CUET UG 2022 — Economics Macro
High powered money comprises of :
Verified 13 Jul 2026.
Options
- A
Notes and coins in circulation with Public and Vault cash of Commercial Banks and deposits held by Government and Commercial Banks with RBI.
- B
Notes and coins in circulation with Public and deposits held by Government.
- C
Currency and deposits held by bank with RBI.
- D
Notes and Vault cash of Commercial Banks.
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