n NISM Certifications
XV NISM Series XV
Medium

What does the Consumer Price Index (CPI) indicate?

Practice question from NISM XV Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Retail prices basket

    Correct answer

  2. B

    Wholesale prices basket

  3. C

    Both wholesale and retail prices

  4. D

    None of the above

Why this is the answer

CPI measures inflation at the consumer level using a basket of goods and services. Wholesale prices are measured by WPI (Wholesale Price Index).

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