Correct answer: (a) 1 only
Explanation
- 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.
- 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.
- C
3 only
(c) 3 only. The Union Finance Minister does not chair the MPC. Statement 3 is false.
- 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.
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