1. Currency with the Public
2. Other Deposits with the RBI
3. Cash Reserves of the banks held with themselves
4. Cash Reserves of the Banks held with RBI
Choose the correct option from the choices given below:
Answer: All of the above
Notes: The other name of the Reserve Money is “High Powered Money” and also “Monetary Base”. Reserve Money is all the Cash in the economy and denoted by M0. This has the following components:
Currency with the Public
Other Deposits with the RBI
Cash Reserves of the banks held with themselves
Cash Reserves of the Banks held with RBI
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