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...Unit demand for money by mr vijay kumar dept of economics thakurkumar gmail com mob no high powered and the multiplier current practice is to explain determinant supplyintermsofmonetarybaseorhigh poweredmoney sum commercial bank reserves currency notes coins held public base expansion deposits creation supply varies directly with changes in monetary baseandinverselywiththecurrencyandreserveratios use consists banks legal limit or required central excess thus power h c rr er where represent acommercialbank sreservesdependuponitsdeposits butabank usually hold its fact do not advance loans up limits precisely less than that hence need arises maintaining them determined reserve ratio rrr deposit d err excessreservestodeposits expressed as a proportion cr influenced such factors income levels people credit instruments uncertainties economic activity formal relation between moneycanbestatedasintheformofequations m andcurrency heldby thepublic thusthesupplyofmoney puts...