Read the following paragraphs and answer the question that follows: The current trend indicates that food and vegetable inflations continue to be pain points. Food inflation rose to 7.79 percent in June from 7.47 percent, and vegetable inflation rose to 14.74 percent from 10.85 percent. In the weeks ahead, the volatile food inflation will determine the course of over- all inflation. For RBI too, the trend is a concern since under the current agreement with the government, if the inflation exceeds 11 percent it will have to explain to the government why it could not be contained (the lower limit is 2 percent). Which of the following options is the most appropriate?

Question

Examsnet · Accepted Answer

Correct Answer is : The first paragraph highlights inflation conditions and the second hints at RBI’s inefficiency in managing the situation.

Xavier Aptitude Test 2017 Paper