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      Question

      What is the Reserve Bank of India’s (RBI) inflation

      target, including its tolerance band?
      A 1.33% ± 2% Correct Answer Incorrect Answer
      B 2% ± 1% Correct Answer Incorrect Answer
      C 4% ± 2% (2%–6%) Correct Answer Incorrect Answer
      D 5% ± 2% Correct Answer Incorrect Answer
      E 7.2% ± 0.5% Correct Answer Incorrect Answer

      Solution

      The RBI’s inflation target is 4%, with a tolerance band of ±2%, meaning the acceptable inflation range is 2%–6%.

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