Question

Who controls the money market in India?

• A. Finance Department
• B. RBI
• C. Financial Institutions
• D. SEBI

Hint:

The Reserve Bank of India is the main regulatory body for the money market, ensuring its stability and efficiency.

Answer 1

The Correct Option is B

Step 1: Understand the role of the RBI.
The Reserve Bank of India (RBI) is the central authority responsible for regulating and overseeing the money market in India. The RBI ensures the stability and liquidity of the financial system.
Step 2: Evaluate the options.
- The RBI has the responsibility for controlling monetary policy and managing money supply, interest rates, and banking operations. - Financial Institutions and SEBI do not have the central regulatory role for the money market. - The Finance Department primarily deals with government finances rather than the overall monetary market.
Step 3: Conclude.
The RBI is the key authority that controls the money market in India.
Final Answer: \[ \boxed{\text{RBI}} \]