📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store
  • âś–

      Question

      Under Section 45ZA of the RBI Act, 1934, the inflation

      target is determined in terms of which index?
      A The Wholesale Price Index Correct Answer Incorrect Answer
      B The GDP Deflator Correct Answer Incorrect Answer
      C The Industrial Production Index Correct Answer Incorrect Answer
      D The Cost Inflation Index Correct Answer Incorrect Answer
      E The Consumer Price Index Correct Answer Incorrect Answer

      Solution

      Section 45ZA(1) requires the Central Government, in consultation with the Bank, to determine the inflation target in terms of the Consumer Price Index once in every five years, and to notify it in the Official Gazette. Section 2(bva) defines the 'Consumer Price Index' as the Consumer Price Index Combined published by the Government of India from time to time. The inflation target is therefore expressed in terms of the Consumer Price Index.

      Practice Next
      ask-question