Economics · Monetary Policy
Under India's Flexible Inflation Targeting (FIT) framework, consider the following statements: 1. The inflation target is notified by the Central Government in consultation with RBI for a five-year period. 2. Failure to maintain CPI inflation within the tolerance band for three consecutive quarters requires RBI to submit a report to Parliament. 3. The Monetary Policy Committee (MPC) consists of six members, including three external members appointed by the Central Government. 4. The legally mandated target variable under FIT is headline Consumer Price Index (CPI) inflation. Which of the above statements are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11, 2 and 3 only
- 22 and 4 only
- 31 and 2 only
- 41, 3 and 4 only✓
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1, 3 and 4 only
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