Ans – (a)
The Central Bank is an Apex body that controls, operates, regulates, and directs the entire banking and monetary structure of the country.
Central Bank:- It is known as the apex body as it occupies the topmost position in the monetary and banking system of the country.
All the financially developed countries have their own, central bank.
India’s Central Bank is the Reserve Bank of India (RBI).
RBI was established in April 1, 1935, under the Reserve Bank of India Act passed in 1934.
The Reserve Bank of India (RBI) is empowered to regulate the money supply in the economy through its ‘Monetary Policy’.
It is the policy adopted by the Central Bank of an economy in the direction of credit control or money supply.
As RBI has the sole monopoly in currency issues, it can control credit and supply of money.
For this, RBI makes use of the following instruments of Monetary Policy.