Q. With reference to the Monetary Policy Committee (MPC) consider the following statements:
1.It is headed by the Finance Minister of India.
2.It is a statutory body.
3.It was set up on the recommendation of the Urjit Patel Committee.
Select the correct statement using the codes given below:

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: B
Notes:

Statement 1: The statement is incorrect. Monetary Policy Committee (MPC) is headed by the RBI Governor.

Statement 2: MPC is a statutory body established under section 45ZB of the RBI Act 1934.

Statement 3: It was set up on the recommendation of the Urjit Patel Committee.

Source: Live Mint