Ans. High Powered Money refers to the total liability of the Reserve Bank of India. It includes currency issued by the Government of India and cash deposits and reserves of commercial banks under RBI. Thus, it is expressed as -H = C+RWhere H = High Powered MoneyC = Currency R = Bank and Government deposits with RBIIt is also called Secured money. Moreover, a crucial portion of this fund is deposited with commercial banks that are responsible for creating credit. Thus studying bank funds are of utmost importance to analyse the economic condition of a country.