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 :
Verified 13 Jul 2026.
Notes and coins in circulation with Public and Vault cash of Commercial Banks and deposits held by Government and Commercial Banks with RBI.
Notes and coins in circulation with Public and deposits held by Government.
Currency and deposits held by bank with RBI.
Notes and Vault cash of Commercial Banks.
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