Which of the following statements is/are correct 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 Union Finance Minister. Select the correct answer using the code given below:

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CollectorBabu · Accepted Answer

Correct Answer: 1 only. ● The Monetary Policy Committee is entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level. ● The Monetary Policy Committee consists of 6 members. Out of the six members of the Monetary Policy Committee, three members are from the RBI and the other three members of MPC are appointed by the Central Government. ● The Monetary Policy Committee is headed by RBI Governor.

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