Question
In the context of Inflation, consider the following
statements: 1. Laspeyre Index is used for the calculation of the Wholesale Price Index. 2. When Inflation increases, the real value of the savings falls. 3. Consumer Price Index covers only Goods in the economy. Which of the statements given above is/are correct?Solution
β Statement 1 is correct: The Laspeyres Price Index is a consumer price index used to measure the change in the prices of a basket of goods and services relative to a specified base period weighting. A key differentiator between the Laspeyres Price Index and other indices (Paasche Price Index, Fisher Price Index, etc.) is that it uses weights taken from a base period. The Index is used for calculation of WPI, CPI, IIP. β Statement 2 is correct: When inflation rises, the purchasing power goes down. If inflation outpaces the interest one earns on their savings, it will feel like losing money as the amount one saves or invests from the income every month may not rise at the same rate. β Statement 3 is incorrect: The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services. It measures price changes from the perspective of a retail buyer. There are four types of CPI:CPI for Industrial Workers (IW), CPI for Agricultural Labourer (AL), CPI for Rural Labourer (RL) and CPI (Rural/Urban/Combined).
The depository as a registered owner shall
In computing the period of limitation for filing a suit the day on which it is reckoned______.Β
What is the penalty for alteration, destruction, etc., of records and failure to protect the electronic database of Board?
Under the PMLA, 2002, the offence of money laundering is defined under which of the following sections?
What are the circumstances under which a man is said to have committed the offence of rape?
A precept can be issued___.
According to the Arbitration and Conciliation Act, 1996, what are the parties free to agree upon in arbitral proceedings?
- As per section 12A of the Commercial Courts Act, when can a suit not be instituted?
What is the obligation of a person who has received advantage under void agreement, or contract that becomes void as per section 65 of the Contract Act?
As per the Insurance Act which of the following conditions would not disqualify a person from being appointed as an insurance agent?