The term 'Core Inflation' is useful for policy makers because it: MCQ with Answer and Explanation

The term 'Core Inflation' is useful for policy makers because it:
A. Measures only food inflation
B. Includes all volatile items
C. Excludes food and fuel prices to reveal underlying inflation trends
D. Is always higher than headline inflation
Answer: Option C
Solution (By JKSSB Mock Tests)
Core inflation excludes volatile components such as food and energy, providing a clearer picture of persistent inflationary pressures for monetary policy decisions.

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Practice More Economy Set 1 Questions

Question #1
The 'Union Budget' is presented under which article of the Constitution?
A. Article 112
B. Article 110
C. Article 265
D. Article 280

Correct Answer: Option A


Explanation:
The Annual Financial Statement is presented under Article 112.

This question belongs to: Economy GK Economy Set 1
Question #2
The Self-Help Group Bank Linkage Programme in India is implemented mainly by:
A. SEBI
B. IRDA
C. NABARD
D. EXIM Bank

Correct Answer: Option C


Explanation:
NABARD is the main implementing agency for the SHG-Bank Linkage Programme.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Eighth Five Year Plan' period was:
A. 1990-1995
B. 1992-1997
C. 1987-1992
D. 1997-2002

Correct Answer: Option B


Explanation:
The Eighth Five Year Plan covered 1992-1997.

This question belongs to: Economy GK Economy Set 1