Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

The currency issued by the Central Bank held by the Public or Commercial Bank is called:

Options:

Low Powered Money

Zero Powered Money

Negative Powered Money

High Powered Money

Correct Answer:

High Powered Money

Explanation:

The correct answer is Option (4) → High Powered Money

This term refers to the money supply's base component, controlled directly by the central bank, which includes currency held by the public and commercial banks' reserves held at the central bank.