CA Foundation P4 · Chapter 8 · Question 13 of 15
Under the amended RBI Act, 1934, the policy repo rate required to achieve the inflation target is determined by:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The Monetary Policy Committee
Explanation
The 2016 amendment to the RBI Act provided a statutory basis for a flexible inflation targeting framework and constituted a Monetary Policy Committee, which decides the policy repo rate by majority vote.
More Money Market MCQs
- Q15Milton Friedman's restatement of the quantity theory treats the demand for money as:
- Q1The most fundamental function of money, which removes the need for a double coincidence of wants, is its function as a:
- Q2Money that is accepted as legal tender by government decree but is not backed by any commodity is called:
- Q3According to Keynes, the three motives for holding money are:
- Q4In Keynesian theory, the 'liquidity trap' refers to a situation where: