Which of the following is a feature of the Indian monetary policy framework since 2016?
A. Flexible inflation targeting with CPI as the nominal anchor
B. Monetary targeting with M3 as the sole intermediate target
C. Multiple indicator approach without a nominal anchor
D. Exchange rate targeting
Answer: Option A
Solution (By JKSSB Mock Tests)
India adopted a Flexible Inflation Targeting framework in 2016, with CPI inflation as the nominal anchor and a target of 4% with a tolerance band of ±2%.
Explanation:
Price discrimination (charging different prices to different consumers for the same product) is typically possible under monopoly where the firm has market power and can segment markets.
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