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What role does the high-powered money (H) play in determining money supply?
  • a)
    It directly determines the money multiplier.
  • b)
    It determines the size of currency reserves.
  • c)
    It is responsible for the creation of demand deposits.
  • d)
    It influences the total money supply.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
What role does the high-powered money (H) play in determining money su...
High-powered money (H) influences the total money supply indirectly through its relationship with the money multiplier and the cash reserve ratio.
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What role does the high-powered money (H) play in determining money supply?a)It directly determines the money multiplier.b)It determines the size of currency reserves.c)It is responsible for the creation of demand deposits.d)It influences the total money supply.Correct answer is option 'D'. Can you explain this answer?
Question Description
What role does the high-powered money (H) play in determining money supply?a)It directly determines the money multiplier.b)It determines the size of currency reserves.c)It is responsible for the creation of demand deposits.d)It influences the total money supply.Correct answer is option 'D'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What role does the high-powered money (H) play in determining money supply?a)It directly determines the money multiplier.b)It determines the size of currency reserves.c)It is responsible for the creation of demand deposits.d)It influences the total money supply.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What role does the high-powered money (H) play in determining money supply?a)It directly determines the money multiplier.b)It determines the size of currency reserves.c)It is responsible for the creation of demand deposits.d)It influences the total money supply.Correct answer is option 'D'. Can you explain this answer?.
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