Money Supply and Its Components of Present Monetary System of India

Abstract

The main objective of this article paper is to make familiarize the readers with the role and importance of money supply and how monetary system works in India. Money supply impacts on aggregate demand of goods and services. Money plays a vital role in economy. Here it mentions various functions of Money and kinds of money. In India, Reserve Bank of India serves as a controller of all commercial bank. It controls the monetary system of India as well. In the article, I mentioned different tools with the help of which RBI can control the Indian economy.