Which of the following are the recommendations of the RBI Expert Committee to revise and strengthen the monetary policy framework?begin{enumerate}item It recommended that a new Consumer Price Index (CPI) should be adopted by Reserve Bank of India (RBI) to anchor the monetary policy.item The committee has also set an inflation target at 4 percent with a band of plus/minus 2 percent around it.item The monetary policy decision should be vested in the hands of the Monetary Policy Committee (MPC) that will be headed by the Governor.item Not to detach Open Market Operations (OMOs) from the fiscal operations and instead linked solely to the liquidity management.end{enumerate} Select the answer from the codes given below: Codes:

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Which of the following are the recommendations of the RBI Expert Committee to revise and strengthen the monetary policy framework?

A	should be adopted by Reserve Bank of India (RBI) to anchor the monetary policy.
B	that will be headed by the Governor.
C	from the fiscal operations and instead linked solely to the liquidity management.
D	1, 2 and 3
E	2, 3 and 4
F	1, 3 and 4
G	All of the above

Explanation:

Detailed explanation-1: -Urijit Patel Committee first proposed the idea for the formation of a five-member Monetary Policy Committee. Later, the government proposed the setting up of a seven-member committee. MPC is assisted by the Monetary Policy Department (MPD) of the Reserve Bank in the formulation of the policy.

Detailed explanation-2: -Monetary policy is a way for the RBI to control the supply of money in the economy. So these credit policies help control the inflation and in turn help with the economic growth and development of the country.

Detailed explanation-3: -The Financial Markets Committee (FMC) meets daily to review the liquidity conditions so as to ensure that the operating target of monetary policy (weighted average lending rate) is kept close to the policy repo rate.

There is 1 question to complete.