Which of the following is the rate set by the Monetary Policy Framework Agreement (MPFA) and is the maximum tolerable rate that RBI should target to…

CA Foundation · Business Economics · PYQS · May 2026
Which of the following is the rate set by the Monetary Policy Framework Agreement (MPFA) and is the maximum tolerable rate that RBI should target to achieve price stability in India?
(A) A. Repo rate
(B) B. Inflation rate
(C) C. MSF rate
(D) D. Reverse repo rate

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Inflation rate

Topics: Money Market

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