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Money Supply & Inflation
What does M0 (Reserve Money) represent in India's money supply framework?
M0, also called High-Powered Money or Monetary Base, comprises currency in circulation plus bankers' deposits with RBI and other deposits with RBI. It is the base upon which broader money supply is built.
What is M1 in India's monetary aggregates?
Currency with public plus demand deposits with banks.
Which component distinguishes M2 from M1 in India's monetary aggregates?
M2 includes all components of M1 (currency with public + demand deposits + other deposits with RBI) plus savings deposits with post office savings banks. M1 does not include post office savings deposits.
What does the term 'High-Powered Money' refer to in monetary economics?
Reserve money or monetary base created by the central bank.
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