AWorld Bank
BCentral Bank
CInternational Monetary Fund
DCommercial Bank
Answer:
B. Central Bank
Read Explanation:
The Central Bank controls the money supply of an economy.
In India, this role is carried out by the Reserve Bank of India (RBI), which is the country's central bank. The central bank controls the money supply through various tools such as:
Open Market Operations (OMOs): Buying and selling government securities to adjust the amount of money circulating in the economy.
Repo and Reverse Repo Rates: Adjusting these rates to influence short-term borrowing costs for commercial banks, thereby affecting the money supply.
Cash Reserve Ratio (CRR): The percentage of a commercial bank's total deposits that must be kept with the central bank as reserves, affecting the amount of money banks can lend.
Statutory Liquidity Ratio (SLR): The minimum percentage of a bank's net demand and time liabilities that it must maintain in the form of liquid assets, also affecting money circulation.
By controlling the money supply, the central bank helps manage inflation, stabilize the currency, and promote economic growth.