2. How does the Reserve Bank of India regulate the money supply in the economy

• RBI is the monetary authority in India.
• It issues currency notes and coins for circulation.
• It controls the creation and supply of money.
• RBI uses monetary policy instruments to regulate money supply.
• These include repo rate, reverse repo rate, CRR, SLR, and OMOs.
• Money supply is increased proportional to expected nominal GDP.