Question: Which of the following statements is/are correct regarding the Monetary Policy Commitee (MPC)?
- It decides the RBI’s benchmark interest rates.
- It is a 12-member body including the Governor of RBI and is reconstituted every year.
- It functions under the chairmanship of the Union Finance Select the correct answer using the code given below:
Options:
A) Only 1
B) 1 and 2
C) Only 3
D) 2 and 3
Show Answer
Answer:
Correct Answer: A
Solution:
- Exp. [a] Statement 1The MPC would be entrusted with fixing the benchmark policy rate (Repo Rate). Statement 2 The MPC is a 6 member body who shall hold office for a period of four years. Statement 3 The Governor of the RBI is the ex-officio chairperson of the MPC.
BETA
