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    Question

    What is the full form of MPC that is entrusted with the

    task of fixing the benchmark policy rate?
    A Minimum and Primary Consumption Correct Answer Incorrect Answer
    B Monetary Policy Committee Correct Answer Incorrect Answer
    C Managers and People Committee Correct Answer Incorrect Answer
    D Mumbai Petroleum Corporation Correct Answer Incorrect Answer
    E Money and People Committee Correct Answer Incorrect Answer

    Solution

    The Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016,  to provide for a statutory and institutionalized framework for a Monetary Policy Committee, for maintaining price stability, while keeping in mind the objective of growth. The Monetary Policy Committee would be entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level.

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