Which of the following statements is an incorrect statement about Finance Commission?

Answer: [C] It sets interest rates, which determine the cost of borrowing and the return on savings

Third statement is the incorrect. Interest rates on savings and borrowing comes under Monetary Policy. Monetary Policies in India are controlled by RBI. Monetary policy is the macroeconomic policy laid down by the central bank of a country. It involves management of money supply and interest rate and is the demand side economic policy used by the government.

This question is a part of GKToday's Integrated IAS General Studies Module