| Which of the following statements is/are correct regarding the Monetary Policy Commitee (MPC)? |
| 1. It decides the RBI's benchmark interest rates. |
| 2. It is a 12-member body including the Governor of RBI and is reconstituted every year. |
| 3. It functions under the chairmanship of the Union Finance |
| Select the correct answer using the code given below: |
A) Only 1
B) 1 and 2
C) Only 3
D) 2 and 3
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. |
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