Q- Consider the following statements with respect to the Monetary Policy Committee MPC-1- It has been constituted under the Reserve Bank Of India Act- 1934 -2- Six member committee is chaired by the Finance Minister of India-3- Decisions regarding interest rates Repo etc- are taken by the consensus among members-Which of the statements given above is-are correct-

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Standard XI

Economics

Foreign Exchange

Q. Consider t...

Question

Q. Consider the following statements with respect to the Monetary Policy Committee (MPC):
Which of the statements given above is/are correct?

1 only

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1 and 3 only

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2 and 3 only

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1, 2 and 3

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Solution

The correct option is A
1 only
Explanation:

Statement 1 is correct: The Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016, to provide for a statutory and institutionalised framework for a Monetary Policy Committee, for maintaining price stability, while keeping in mind the objective of growth.

Statement 2 is incorrect: The 6 member MPC is headed by the Governor of the RBI. MPC consists of 3 members of RBI and 3 other members appointed by the government.

Statement 3 is incorrect: Decisions regarding the policy rates are taken by the majority.

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Q. Consider the following statements with respect to the Monetary Policy Committee (MPC): Which of the statements given above is/are correct?

Q. Consider the following statements with respect to the Monetary Policy Committee (MPC):
Which of the statements given above is/are correct?