UPSC Prelims Practice Questions — Moving on

Q1. The adoption of flexible inflation targeting, under which the Consumer Price Index (Combined) serves as the nominal anchor for monetary policy in India, derives its statutory basis from which one of the following?

  • A. The Reserve Bank of India Act, 1934, as amended by the Finance Act, 2016
  • B. The Fiscal Responsibility and Budget Management Act, 2003
  • C. The Banking Regulation Act, 1949
  • D. The Government Securities Act, 2006

Q2. In the context of the new Consumer Price Index series (base 2024=100), the acronym 'COICOP' refers to which one of the following?

  • A. Composite Output Index for Consumption of Output Producers
  • B. Centralised Online Index of Consumer Outlay and Prices
  • C. Classification of Individual Consumption According to Purpose
  • D. Consolidated Index of Core Output and Consumer Prices

Q3. Under the new Consumer Price Index series (base 2024=100) launched in February 2026, which one of the following remains the single largest component (by weight) of the All-India CPI basket?

  • A. Housing
  • B. Fuel and Light
  • C. Miscellaneous (services)
  • D. Food and Beverages

Q4. The compilation and monthly release of the All-India Consumer Price Index (Combined) on base 2024=100 is the responsibility of which one of the following?

  • A. Monetary Policy Department, Reserve Bank of India
  • B. Department of Economic Affairs, Ministry of Finance
  • C. National Statistical Office under the Ministry of Statistics and Programme Implementation
  • D. Economics and Statistics Division, NITI Aayog