Q. .Which of the following can cause inflation in India?
1.El Nino
2.Rising international commodity prices
3.Tightening monetary policies
Select the correct answer using the code given below:

[A] 1 only

[B] 1 and 2 only

[C] 2 only

[D] 1, 2 and 3

Answer: B

Explanation – El Nino is usually linked with poor monsoon performance which will lead to inflation, rising international commodity prices will make import costlier and lead to inflation. Tightening monetary policies or higher interest rates is a measure to control inflation.

Source: Live Mint