1 View

Question : ________ is the currency in the hands of the public plus commercial bank reserves, also called ‘high-powered money’.

Option 1: Desired reserve ratio

Option 2: Excess reserves

Option 3: Monetary base

Option 4: Money multiplier


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 10th Jan, 2024

Correct Answer: Monetary base


Solution : The correct answer is the Monetary base

Other names for reserve money include high-powered money, monetary base, central bank money, and base money. It is either the foundation of the money supply or its most potent element. Reserve money is, to put it simply, currency in circulation plus deposits made to the RBI by commercial banks.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
GRE ® Registrations 2024
Apply
Apply for GRE® Test now & save 10% with ApplyShop Gift Card | World's most used Admission Test for Graduate & Professional Schools
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books