Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

Who regulates the money supply in India?

Options:

Central bank 

Government of India

NITI Ayog

Commercial banks

Correct Answer:

Central bank 

Explanation:

The correct answer is option 1: Central bank


In India, the Reserve Bank of India (RBI), which is the central bank, is responsible for regulating the money supply. The RBI uses various monetary policy tools, such as repo rates, reverse repo rates, and open market operations, to manage the money supply and ensure economic stability.