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:

1. A

   1 only

   (a) 1 only. The Monetary Policy Committee decides the policy repo rate and thereby RBI’s benchmark rates. It is a six-member body chaired by the RBI Governor, not a twelve-member panel under the Finance Minister. Only statement 1 is correct, so this is the official key.

2. B

   1 and 2 only

   (b) 1 and 2 only. Statement 2 is wrong on size (six, not twelve) and on annual reconstitution as a 12-member body. So 1 and 2 only is not the key.

3. C

   3 only

   (c) 3 only. The Union Finance Minister does not chair the MPC. Statement 3 is false.

4. D

   2 and 3 only

   (d) 2 and 3 only. Both size/chair claims fail. This code is not the key.

Summary. Official key is (a) 1 only. The statutory MPC sets the policy repo rate that anchors RBI’s interest-rate corridor. It has six members: three from RBI, including the Governor as Chair, and three appointed by the Central Government. It is not a twelve-member annual board and it does not sit under the Finance Minister. Meetings and the 4% CPI target with a ±2% band are the neighbouring facts.