Monetary Policy Committee — Prelims Questions

Which of the following statements about the Monetary Policy Committee (MPC) in India is/are correct? 1. The MPC is a six-member body, with three members nominated by the Central Government and three from the Reserve Bank of India. 2. The Governor of the Reserve Bank of India acts as the ex-officio Chairperson of the MPC and has a casting vote in case of a tie. 3. The primary objective of the MPC is to maintain price stability while keeping in mind the objective of growth, with a target of 4% CPI inflation (+/- 2% tolerance band). Select the correct answer using the code given below:

Which of the following sections of the Reserve Bank of India Act, 1934, deals with the accountability of the Monetary Policy Committee (MPC) if it fails to meet the inflation target?

Consider the following statements regarding the external members of the Monetary Policy Committee (MPC): 1. They are appointed by the Central Government for a term of four years and are eligible for re-appointment. 2. They are selected by a Search-cum-Selection Committee which includes the Cabinet Secretary and the RBI Governor. Which of the statements given above is/are correct?

Which of the following is NOT a primary channel through which monetary policy transmission typically occurs in an economy?

What is the minimum number of meetings the Monetary Policy Committee (MPC) is required to hold in a year?