High powered money consists of:
Options
ACurrency with public + Reserves
BM1
CM2
DM3
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Money MarketPYQ - May 2022 (Inter)Question 149 of 20
All Questions Correct Answer
✅ Option a — Currency with public + Reserves
All Options:
- ACurrency with public + Reserves
- BM1
- CM2
- DM3
About This Chapter: Money Market
Paper
Paper 4: Business Economics
Weightage
10%
Key Topics
Money Demand/Supply, Monetary Policy
This chapter covers the monetary system — how money circulates in the economy. Topics include Demand for Money, Supply of Money, Monetary Policy instruments (Repo Rate, CRR, SLR, Open Market Operations), and the role of the Reserve Bank of India in controlling inflation and managing the economy.
View Official ICAI SyllabusExam Strategy Tip
Memorize the RBI's monetary policy instruments and their impacts. Questions often ask about the effect of changing CRR or Repo Rate on money supply.
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