High Powered Money consists of 1 Notes and coins in circulation with the public 2 Vault cash o...........

Economic Affairs Types of Banks and Banking

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High Powered Money consists of

1. Notes and coins in circulation with the public

2. Vault cash of commercial banks

3. Deposits held by the Government of India with RBI

4. Deposits held by the Commercial Banks with RBI

Which of the statements given above is/are correct?

All the above

1, 2 & 3 Only

2, 3 & 4 Only

1, 2 & 4 Only

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Explanation:

All the statements are correct.

High Powered Money- The total amount of currency held by the public, as well as cash in the vaults of financial institutions, and bank deposits at the Federal Reserve. The Federal Reserve Bank maintains close Control over the amount of high powered money that can influence its monetary policy decisions. also called the monetary base.