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- Central Bank reserves
- Broad money
Base Money:Also known as reserve money or Central Bank money Comprises of IOUs from the Central Bank. This includes: Currency in circulation (CIC):Currency issued by the Central Bank - notes & coins, IOU from the Central Bank to the consumers in the economy Central Bank reserves:Statutory reserves required by commercial banks to be maintained with the Central Bank (e.g.: CRR, SLR balances form HQLA) IOUs from the Central Bank, on behalf of govt, to the commercial banks Broad moneyMoney circulating in the economy, available for transactions. This includes- Currency with public = CIC - Cash balances held by banks Bank deposits = Savings deposits (or demand deposits) + Term deposits (or time deposits) The currency in circulation is created by the CB, bank deposits are created by commercial banks themselves - > we shall cover later In India, the following monetary aggregates are used- Download 1.05 Mb. Share with your friends:
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