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Consider the following statements about Monetary Policy Committee (MPC):
1. The Reserve Bank of India Act of 1934 created it.
2. The chairman of the committee is India'sIndia's Finance Secretary.
3. The MPC is in charge of deciding on the inflation target.
Which of the statements given above is/are correct?
- a)1 only
- b)1 and 2 only
- c)2 and 3 only
- d)3 only
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Consider the following statements about Monetary Policy Committee (MPC...
- The Monetary Policy Committee (MPC) is a statutory and institutionalized framework under the Reserve Bank of India Act, 1934, for maintaining price stability while keeping in mind the objective of growth.
- The Governor of RBI is ex-officio Chairman of the committee.
- The MPC determines the policy interest rate (repo rate) required to achieve the inflation target (4%).
- It is the Central Government of India that determines the Inflation Target.
-
- An RBI-appointed committee led by the then deputy governor Urjit Patel in 2014 recommended establishing the Monetary Policy Committee.
Most Upvoted Answer
Consider the following statements about Monetary Policy Committee (MPC...
Monetary Policy Committee (MPC)
The Monetary Policy Committee (MPC) is a committee of the Reserve Bank of India (RBI) responsible for fixing the benchmark interest rate in India, which is the repo rate. The committee was created in 2016 after the government amended the RBI Act, 1934.
Statements about MPC
1. The Reserve Bank of India Act of 1934 created it.
This statement is incorrect. The Monetary Policy Committee (MPC) was created in 2016 after the government amended the RBI Act, 1934. The committee is responsible for fixing the benchmark interest rate in India, which is the repo rate.
2. The chairman of the committee is India's Finance Secretary.
This statement is incorrect. The chairman of the Monetary Policy Committee (MPC) is the Governor of the Reserve Bank of India (RBI). The committee consists of six members, with three members appointed by the government and three members appointed by the RBI.
3. The MPC is in charge of deciding on the inflation target.
This statement is correct. The Monetary Policy Committee (MPC) is responsible for setting the inflation target in India. The current target is to keep inflation at 4%, with a tolerance range of +/- 2 percentage points. The committee uses various tools, such as the repo rate, to achieve this target.
Conclusion
In conclusion, statement 1 is incorrect, statement 2 is incorrect, and statement 3 is correct. The Reserve Bank of India Act of 1934 did not create the Monetary Policy Committee (MPC), the chairman of the committee is the Governor of the RBI, and the MPC is responsible for setting the inflation target in India.
The Monetary Policy Committee (MPC) is a committee of the Reserve Bank of India (RBI) responsible for fixing the benchmark interest rate in India, which is the repo rate. The committee was created in 2016 after the government amended the RBI Act, 1934.
Statements about MPC
1. The Reserve Bank of India Act of 1934 created it.
This statement is incorrect. The Monetary Policy Committee (MPC) was created in 2016 after the government amended the RBI Act, 1934. The committee is responsible for fixing the benchmark interest rate in India, which is the repo rate.
2. The chairman of the committee is India's Finance Secretary.
This statement is incorrect. The chairman of the Monetary Policy Committee (MPC) is the Governor of the Reserve Bank of India (RBI). The committee consists of six members, with three members appointed by the government and three members appointed by the RBI.
3. The MPC is in charge of deciding on the inflation target.
This statement is correct. The Monetary Policy Committee (MPC) is responsible for setting the inflation target in India. The current target is to keep inflation at 4%, with a tolerance range of +/- 2 percentage points. The committee uses various tools, such as the repo rate, to achieve this target.
Conclusion
In conclusion, statement 1 is incorrect, statement 2 is incorrect, and statement 3 is correct. The Reserve Bank of India Act of 1934 did not create the Monetary Policy Committee (MPC), the chairman of the committee is the Governor of the RBI, and the MPC is responsible for setting the inflation target in India.
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Community Answer
Consider the following statements about Monetary Policy Committee (MPC...
- The Monetary Policy Committee (MPC) is a statutory and institutionalized framework under the Reserve Bank of India Act, 1934, for maintaining price stability while keeping in mind the objective of growth.
- The Governor of RBI is ex-officio Chairman of the committee.
- The MPC determines the policy interest rate (repo rate) required to achieve the inflation target (4%).
- It is the Central Government of India that determines the Inflation Target.
-
- An RBI-appointed committee led by the then deputy governor Urjit Patel in 2014 recommended establishing the Monetary Policy Committee.
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Consider the following statements about Monetary Policy Committee (MPC):1. The Reserve Bank of India Act of 1934 created it.2. The chairman of the committee is IndiasIndias Finance Secretary.3. The MPC is in charge of deciding on the inflation target.Which of the statements given above is/are correct?a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)3 onlyCorrect answer is option 'A'. Can you explain this answer?
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Consider the following statements about Monetary Policy Committee (MPC):1. The Reserve Bank of India Act of 1934 created it.2. The chairman of the committee is IndiasIndias Finance Secretary.3. The MPC is in charge of deciding on the inflation target.Which of the statements given above is/are correct?a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)3 onlyCorrect answer is option 'A'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about Consider the following statements about Monetary Policy Committee (MPC):1. The Reserve Bank of India Act of 1934 created it.2. The chairman of the committee is IndiasIndias Finance Secretary.3. The MPC is in charge of deciding on the inflation target.Which of the statements given above is/are correct?a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)3 onlyCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements about Monetary Policy Committee (MPC):1. The Reserve Bank of India Act of 1934 created it.2. The chairman of the committee is IndiasIndias Finance Secretary.3. The MPC is in charge of deciding on the inflation target.Which of the statements given above is/are correct?a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)3 onlyCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Consider the following statements about Monetary Policy Committee (MPC):1. The Reserve Bank of India Act of 1934 created it.2. The chairman of the committee is IndiasIndias Finance Secretary.3. The MPC is in charge of deciding on the inflation target.Which of the statements given above is/are correct?a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)3 onlyCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Current Affairs.
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