High Powered Money consists of:
A. Currency held by the public
B. Required reserve ratio
C. Excess reserve of commercial banks
D. Currency held by foreigners
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2 marksMacroeconomicsMoney supply and the banking multiplierThe monetary base and the money multiplierModerateabout 1 min
UGC-NET 2026 Question 68: Money supply and the banking multiplier
Answer and worked solution
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Money supply and the banking multiplier has come up 74 times in 7 exams since 2005.
What this question tests
This question is on The monetary base and the money multiplier, part of Money supply and the banking multiplier in Macroeconomics.
How the money supply is built from high-powered money, and what sets the multiplier.
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