Which of the following statements is/are correct regarding the Monetary Policy Committee (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 Minister.
Select the correct answer using the code given below:
Answer:
(a)
Core Books/NCERT
The Monetary Policy Committee would be entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level. It consists of 6 members. The Members of the Monetary Policy Committee appointed by the Central Government shall hold office for a period of four years. The Governor of the Bank—Chairperson, ex officio www.civilsdaily.com/centre-notifies-amended-rbi-act-mpc/