Multiple Choice Questions on Consider the following statements regarding the Monetary Policy Committee MPC It decides the RBI rsq........... for UPSC Civil Services Examination (General Studies) Preparation

Back to Main Page

Multiple Choice Questions

Consider the following statements regarding the Monetary Policy Committee MPC It decides the RBI rsq...........

Economic Affairs Types of Banks and Banking
    Download Solution PDF

    Consider the following statements 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 RBI’s Governor.

    Select the correct statement.

    1&2 only

    Incorrect Answer

    2&3 only

    Incorrect Answer

    1&3 only

    Correct Answer

    All of the above

    Incorrect Answer
    छोटे Courses बड़े Results
    Master Types of Banks and Banking
    Prepare through Micro-courses
    Try Now
    Explanation:

    Both statements 1&3 are correct.

    • It decides the repo rates, CRR, SLR etc. It replaced the earlier system of policy rate veto by the RBI governor.
    • It consists of six members (RBI Governor, Deputy Gov RBI, One RBI officer and three members nominated by the government), and they hold office for a period of four years.
    • The Governor of the RBI is the ex-officio Chairperson of MPC.

    Hence option 3rd is correct.

    By: Shubham Tiwari
    ProfileResources

    Let's Discuss

    Master
    Types of Banks and Banking
    With abhipedia
    Micro Courses
    Try Now
    What our students have to say
    Review on us
    Download Abhipedia Android App

    Access to prime resources

    Downlod from playstore
    download android app download android app for free