Which of the following is correct regarding proposed monetary policy committee Monetary Policy...........

Economic Affairs Money Supply and Monetary Policy

Download Solution PDF

Which of the following is correct regarding proposed monetary policy committee?

Monetary Policy Committee (MPC) was constituted in August 2016.
It has three members from RBI and three from government
The six member MPC has been entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation
The RBI Act was amended by the Finance Act, 2015 to provide for a statutory and institutionalised framework for MPC.

1, 2 and 3 only

1 and 4 only

1, 2 and 4 only

1 and 3 only

छोटे Courses बड़े Results

Master Money Supply and Monetary Policy

Prepare through Micro-courses

Try Now

Explanation:

The six member MPC has been entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level. It will help in determining the Monetary Policy which in turn adds value and transparency to monetary policy decisions. The meetings of the MPC will be held at least 4 times a year and it will publish its decisions after each such meeting. The RBI Act was amended by the Finance Act, 2016 to provide for a statutory and institutionalised framework for MPC.