Economics · Monetary Economics
High-powered money (Monetary Base / M0) consists of:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Currency with public + Currency held by foreign institutions
- 2Time deposits + Demand deposits
- 3Currency held by the public + Cash reserves of banks with the central bank✓
- 4Currency with banks + Cash reserves of banks
Correct answer
Currency held by the public + Cash reserves of banks with the central bank
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