Inflation in India

Who primarily monitors and controls inflation in India?

• Ministry of Finance

• Reserve Bank of India (RBI)

• Planning Commission

• Ministry of Commerce and Industry

Which of the following indices is commonly used to measure inflation in India?

• Consumer Confidence Index

• Gross Domestic Product (GDP) Index

• Consumer Price Index (CPI)

• Wholesale Price Index (WPI)

What is the main difference between Consumer Price Index (CPI) and Wholesale Price Index (WPI)?

• • A. CPI includes only consumer goods, while WPI includes all goods.

• • B. WPI includes only consumer goods, while CPI includes all goods.

• • C. CPI measures retail prices, while WPI measures wholesale prices.

• • D. There is no difference; they measure the same basket of goods.

In India, what is the primary cause of demand-pull inflation?

• Increase in production costs

• Excessive money supply and increased demand

• Decrease in aggregate demand

• Supply chain disruptions

What role does the Reserve Bank of India (RBI) play in controlling inflation?

• Setting fiscal policies

• Directly controlling prices of goods and services

• Implementing monetary policies

• Regulating international trade

Which of the following is an example of cost-push inflation in India?

• Increased consumer spending

• Rise in oil prices leading to higher production costs

• Government increasing public expenditure

• Surge in exports

How does the Reserve Bank of India (RBI) use the Repo Rate to control inflation?

• • A. By directly controlling prices of goods and services

• • B. By influencing interest rates and credit availability

• • C. By regulating international trade

• • D. By increasing government spending

What is the impact of inflation on the purchasing power of money in India?

• Increases purchasing power

• No impact on purchasing power

• Decreases purchasing power

• Depends on the type of inflation

What does "stagflation" refer to in the context of the Indian economy?

• • A. Rapid economic growth with low inflation

• • B. Economic stagnation accompanied by high inflation

• • C. Stable economic conditions with moderate inflation

• • D. High unemployment with low inflation

What external factors can contribute to inflation in India?

• Global oil prices

• Domestic agricultural production

• International trade policies

• All of the above