SSC Selection Post 2025 PYQ — Question 2

Correct Answer
Savings Money

Explanation
Reserve Money refers to the total currency issued by the central bank along with the reserves maintained by commercial banks with the central bank. It is also known as Base Money or High Powered Money. "Savings Money" is not a synonym or component of Reserve Money.

Key Points
• Reserve Money is also called Base Money.
• Reserve Money is known as High Powered Money.
• It forms the monetary base controlled by the central bank.
• Savings Money does not fall under the category of Reserve Money.

Additional Facts
• Reserve Money is generally denoted as M0.
• In India, Reserve Money is managed and regulated by the Reserve Bank of India (RBI).
• It serves as the foundation for the expansion of money supply in the economy.

Important Questions

Question: What is another name for Reserve Money?
Answer: Base Money or High Powered Money.

Question: Which institution controls Reserve Money in India?
Answer: The Reserve Bank of India (RBI).