Advertisements
Advertisements
Question
Who regulates the money supply in India?
Options
Government of India
RBI
NITI Aayog
None of these
MCQ
Advertisements
Solution
RBI
Explanation:
As the central bank of the nation, the Reserve Bank of India (RBI) holds the sole authority to formulate monetary policy and regulate the money supply. It utilizes quantitative and qualitative tools such as the Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), and repo rates to control market liquidity, manage inflation, and ensure financial stability.
shaalaa.com
Is there an error in this question or solution?
