High-powered money includes only the cash reserves of commercial banks

420 viewsDecember 15, 2023Money and Banking True or False

Anurag Pathak26.69K December 15, 2023 0 Comments

True or False with Reasons

High-powered money includes only the cash reserves of commercial banks.

Anurag Pathak Changed status to publish December 15, 2023

Add a Comment

1 Answer

Anurag Pathak26.69K Posted December 15, 2023 0 Comments

False,

In addition to cash reserves of commercial banks, high-powered money also includes currency held by the public.

What is high-powered money?

High Powered Money is money produced by the RBI and the government.

It consists of two components:

1. Currency held by the public
2. Cash reserves with the banks

Anurag Pathak Changed status to publish December 15, 2023

Add a Comment

Anurag Pathak

Anurag Pathak is an academic teacher. He has been teaching Accountancy and Economics for CBSE students for the last 18 years. In his guidance, thousands of students have secured good marks in their board exams and legacy is still going on. You can subscribe his youtube channel and can download the Android & ios app for free lectures.

Articles: 7585

Telegram Channel

Telegram Channel

High-powered money includes only the cash reserves of commercial banks

1 Answer

Anurag Pathak

1 Answer

Anurag Pathak

Related Questions