Attempt this previous-year question. The correct option stays hidden until you choose.
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 :
Pick an option to check yourself.
• Correct Answer: A
• MPC is a statutory body under the RBI Act, 1934 that determines the benchmark policy repo rate to achieve inflation targets.
• It is a 6-member body (3 from RBI + 3 government appointees), not 12, chaired by the RBI Governor, not the Finance Minister.
• Statements 2 and 3 are factually incorrect.
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