High-powered money (reserve money) consists of

demand deposits and time depositsCorrect answerYour answercurrency held by the public and the reserves of commercial banksCorrect answerYour answerM3 and post office depositsCorrect answerYour answerloans given by commercial banksCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

High-powered money is the money issued by the central bank: currency, wherever it is held, and banks' deposits with the RBI.
Banks build deposits on top of it, which is why it is 'high-powered'.

Concept: High-powered money
Typical timeTypical: 40 s
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The rule this testsHigh-powered money

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High-powered money (reserve money) consists of

Explanation