WebMathematically, money multiplier formula can be represented as follows: Money multiplier = 1/r Where r = Required reserve ratio or cash reserve ratio It means that if the reserve ratio is higher, then the money multiplier will be lower and the banks need to keep more reserves. WebCorrect option is B) 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 …
Money – CBSE Notes for Class 12 Macro Economics
WebSep 29, 2024 · What is High powered money? Ans: It is money produced by the RBI and the government. It consists of two things: currency held by the public and Cash reserves with … WebHigh Powered Money. High powered money or monetary base refers to the money produced by R.B.I. and Government of India. Alternatively total liability of monetary authority of the country and R.B.I. is called monetary base or high powered money (H). It consists of (i) currency (notes and coins) in the hands of public (C), (ii) Cash reserve of commercial … does naruto beat orochimaru at the bridge
Money and High Powered Money Class 12 …
WebCLASS XII ECONOMICS (030) ... Suppose you are a member of the high powered committee constituted by the Reserve Bank of India (RBI). ... You have suggested that as the supervisor of commercial banks, ..... (restriction/release) of the money supply be ensured, by the Reserve Bank of India (RBI). (Choose the correct alternative) 1 WebApr 20, 2024 · High powered money includes – (a) currency and demand deposits (b) demand deposits and saving deposits (c) currency held by public and cash reserves with banks (d) none of these Answer Question. Money supply is a __ concept. (a) Flow (b) Stock (c) Variable (d) All of these Answer Question. _ are called legal tenders. (a) demand … WebSep 4, 2024 · High Powered Money refers to the monetary base of base money in the country. It includes, i) currency held by the people, ii) cash reserves of the commercial … does naruto become the 7th hokage