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The video discusses the tension between the bond market and the RBI, focusing on inflation concerns and fiscal policy. It highlights the RBI's stance on inflation, considering it temporary due to supply-side issues. The discussion also covers economic growth prospects, consumption trends, and the impact of elevated oil prices on India's economy.

What is the primary concern of the bond market regarding the RBI's policy?

• Excess supply of government securities

• Strong economic growth

• High interest rates

• Low inflation

According to the RBI, what is the nature of the current inflation?

• Permanent and structural

• Temporary due to supply-side constraints

• Caused by high demand

• Driven by global factors

What is the RBI's stance on the potential overheating of the economy?

• The economy is overheating

• There is still unutilized capacity

• Demand is exceeding supply

• Credit growth is too high

What fiscal measure is the government using to boost consumption?

• Increasing taxes

• Providing targeted subsidies

• Reducing interest rates

• Cutting government spending

How does the government plan to encourage discretionary spending?

• By increasing interest rates

• By ensuring policy certainties

• By reducing subsidies

• By increasing import duties

What is the impact of elevated oil prices on India's inflation, according to the assessment?

• It will cause a significant increase in inflation

• It will have a manageable impact

• It will not affect inflation at all

• It will lead to deflation

What was the assumed oil price in the Reserve Bank's monetary policy report?

• $80

• $70

• $65

• $50