Important Questions on Inflation Targeting Economy for all Upcoming Competitive Exams

Important Questions on Inflation Targeting

Important Questions on Inflation Targeting / Important Question on Inflation Targeting (Economics) /Top Ten question on Inflation Targeting (Economics) / MCQ’s on Inflation Targeting (Economics) / Questions asked in previous year exams on Inflation Targeting (Economics)


Important Questions on Inflation Targeting

Important Questions on Inflation Targeting :

The announcement of an official target range for inflation is known as inflation targeting. It is done by central bank in an economy as a part of their monetary policy to realise the objective of a stable rate of inflation. India announced inflation targeting formally in February 2015.

1. What is the healthy range of inflation set for the financial year 2016-17?
(a) 2-5
(b) 2-4
(c) 2-6
(d) 2-7


2. RBI to publish a document of sources and forecasts of inflation after every ________ months?
(a) 4
(b) 6
(c) 8
(d) 12


3. _______ went for inflation targeting in 1989 for the 1st time in the world :
(a) Australia
(b) England
(c) USA
(d) New Zealand


4. India commended inflation targeting formally in _______ .
(a) February 2014
(b) January 2015
(c) February 2015
(d) February 2013

5. RBI to publish ______ targets of monetary policy.
(a) Procedural
(b) Operating
(c) Manual
(d) None of these


6. When there is a price rise of one or small group of commodities over a sustained period of time it is called _________ ?
(a) Hyper inflation
(b) Skewflation
(c) Galloping inflation
(d) Law Inflation


7. The Ration between GDP at current prices and GDP at constant prices is called ________ .
(a) GDP Inflator
(b) GDP equator
(c) GDP deflator
(d) GDP simulator


8. Impact of last year’s inflation on current year’s Inflation is called ________ .
(a) Null effect
(b) Base effect
(c) Constant effect
(d) Continous effect


9. India calculates its inflation on _____ Price indices.
(a) Two
(b) Three
(c) Four
(d) Five


10. CPI –C, in this term C stands for :
(a) Collective
(b) Combined
(c) Collateral
(d) Concurrent






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1. c
2. b
3. d
4. c
5. b
6. b
7. c
8. b
9. a
10. b

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