Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC) and its policy tools?

Question

Accepted Answer

C) Both 1 and 2 — Statement 1 is correct; the MPC is a statutory six-member body (3 RBI officials, 3 external members) tasked with determining the policy rate to achieve the inflation target. Statement 2 is correct; an 'accommodative' stance means the central bank is prepared to cut interest rates and expand the money supply to foster economic growth.

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