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      Question

      What is the inflation target likely to be retained by

      the Government of India for the Reserve Bank of India (RBI)?
      A 2% with a band of 1%–3% Correct Answer Incorrect Answer
      B 3% with a band of 1%–5% Correct Answer Incorrect Answer
      C 4% with a band of 2%–6% Correct Answer Incorrect Answer
      D 5% with a band of 3%–7% Correct Answer Incorrect Answer
      E 6% with a band of 2%–8% Correct Answer Incorrect Answer

      Solution

      The government is likely to retain the existing inflation target of 4%, with a tolerance band of 2%–6%, as per the inflation targeting framework set for the Reserve Bank of India.

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