Home › Quizzes › Composition of MPC

Composition of MPC

The Monetary Policy Committee (MPC) is a committee of the Reserve Bank of India (RBI) that is responsible for setting the benchmark interest rate in India. The MPC was established in 2016 and is chaired by the Governor of the RBI. The other members of the MPC are six external members, who are appointed by the Government of India for a period of four years.

15 Questions Published
Play Quiz Practise this topic out loud

Questions

Question 1 Multiple Choice (Single Answer)

Who is the chairperson of the Monetary Policy Committee (MPC)?

  1. The Governor of the Reserve Bank of India (RBI)
  2. The Finance Minister of India
  3. The Prime Minister of India
  4. The President of India
Question 2 Multiple Choice (Single Answer)

How many external members are there in the MPC?

  1. Four
  2. Six
  3. Eight
  4. Ten
Question 3 Multiple Choice (Single Answer)

Who appoints the external members of the MPC?

  1. The Governor of the RBI
  2. The Finance Minister of India
  3. The Prime Minister of India
  4. The President of India
Question 4 Multiple Choice (Single Answer)

What is the term of office of the external members of the MPC?

  1. Two years
  2. Three years
  3. Four years
  4. Five years
Question 5 Multiple Choice (Single Answer)

What is the main function of the MPC?

  1. To set the benchmark interest rate in India
  2. To regulate the banking sector in India
  3. To manage the foreign exchange reserves of India
  4. To advise the Government of India on economic policy
Question 6 Multiple Choice (Single Answer)

What is the benchmark interest rate in India?

  1. The repo rate
  2. The reverse repo rate
  3. The bank rate
  4. The marginal standing facility rate
Question 7 Multiple Choice (Single Answer)

What is the repo rate?

  1. The rate at which banks borrow money from the RBI
  2. The rate at which banks lend money to the RBI
  3. The rate at which banks lend money to each other
  4. The rate at which the RBI lends money to the Government of India
Question 8 Multiple Choice (Single Answer)

What is the reverse repo rate?

  1. The rate at which banks borrow money from the RBI
  2. The rate at which banks lend money to the RBI
  3. The rate at which banks lend money to each other
  4. The rate at which the RBI lends money to the Government of India
Question 9 Multiple Choice (Single Answer)

What is the bank rate?

  1. The rate at which banks borrow money from the RBI
  2. The rate at which banks lend money to the RBI
  3. The rate at which banks lend money to each other
  4. The rate at which the RBI lends money to the Government of India
Question 10 Multiple Choice (Single Answer)

What is the marginal standing facility rate?

  1. The rate at which banks borrow money from the RBI
  2. The rate at which banks lend money to the RBI
  3. The rate at which banks lend money to each other
  4. The rate at which the RBI lends money to the Government of India
Question 11 Multiple Choice (Single Answer)

How often does the MPC meet?

  1. Once a month
  2. Once a quarter
  3. Once a year
  4. Twice a year
Question 12 Multiple Choice (Single Answer)

Where does the MPC meet?

  1. Mumbai
  2. Delhi
  3. Kolkata
  4. Chennai
Question 13 Multiple Choice (Single Answer)

What is the quorum for the MPC?

  1. Three members
  2. Five members
  3. Seven members
  4. Nine members
Question 14 Multiple Choice (Single Answer)

What is the voting procedure in the MPC?

  1. Simple majority
  2. Two-thirds majority
  3. Three-fourths majority
  4. Unanimous
Question 15 Multiple Choice (Single Answer)

What is the role of the MPC in the financial stability of India?

  1. To ensure that the financial system is sound and stable
  2. To promote economic growth and development
  3. To protect the interests of depositors and investors
  4. All of the above
← Back to Quizzes