Which of the following is not correct about MPC in India 1 The MPC will set interest rates to ...........

Economic Affairs Money Supply and Monetary Policy

Download Solution PDF

Which of the following is not correct about MPC in India:

1. The MPC will set interest rates to keep retail inflation within targets

2. The committee will have six members. Of the six members, the government will nominate two.

3. Members of the MPC will be appointed for a period of four years and shall be eligible for reappointment

code

2 and 3 only

1 and 2 only

1 and 3 only

1,2 and 3

छोटे Courses बड़े Results

Master Money Supply and Monetary Policy

Prepare through Micro-courses

Try Now

Explanation:

exp: The committee will have six members. Of the six members, the government will nominate three. The RBI Governor will chair the committee. The governor, however, will not enjoy a veto power to overrule the other panel members, but will have a casting vote in case of a tie. No government official will be nominated to the MPC.
members of the MPC will be appointed for a period of four years and shall not be eligible for reappointment