Question
Which of the following is component of reserve
money? i. Currency in circulation  ii. Bankers’ deposit with RBI iii. Other deposits with RBISolution
It is essentially the central bank's money. It is also called high-powered money, base money and central bank money. As per the definition, reserve money equals currency in circulation plus bankers' deposits with RBI plus 'other' deposits with RBI. It is the base level for money supply or the high-powered component of money supply.
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