Consider the following:
1. Rate of Inflation
2. Current Account Deficit
3. Fiscal Deficit
Which among the above is / are included in the Macroeconomic Vulnerability Index released by India’s Ministry of Finance?

Answer: [D] 1, 2 & 3

Macroeconomic Vulnerability Index which adds up rate of inflation, current account deficit and fiscal deficit of a country is quite helpful in comparing countries across years. In developing countries the MVI is determined by various structural conditions which expose an economy to financial shocks.

This question is a part of GKToday's Integrated IAS General Studies Module