Which of the following statements correctly describe the Flexible Inflation Targeting (FIT) framework adopted by India in 2016?
- It provides a statutory basis for an inflation target to be set by the Government in consultation with the RBI once every five years.
- It focuses solely on maintaining price stability without regard to other economic factors.
- It aims to bring more stability, predictability, and transparency in deciding monetary policy.
1
1 and 2 only
2
1 and 3 only
3
2 and 3 only
4
1, 2, and 3
5
None of the above