Q. Reserve Money (M0) in India, also known as high-powered money, comprises:

[A] Currency in circulation plus demand deposits with commercial banks

[B] Bankers' deposits with RBI plus 'other' deposits and coins

[C] Time deposits plus post office savings

[D] Excess reserves plus government securities

Answer: B
Notes:

Explanation: M0 = Currency outstanding + Reserves (bankers’ and others) with RBI, forming the monetary base for credit creation.

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