The Macro Vulnerability Index MVI is used for calculating the Macro Economic performance of the Coun...........

Economic Affairs Development and Indicators

The Macro-Vulnerability Index (MVI) is used for calculating the Macro-Economic performance of the Country. Which of the following factors are used to determine MVI?

1. Current Account Deficit

2. Fiscal Deficit

3. Primary Deficit

4. Rate of Inflation

5. Exchange Rate

Select the correct answer from the code given below.

2, 4 and 5 only

3, 4 and 5 only

1, 2 and 4 only

2 and 4 only

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Explanation:

Macroeconomic Vulnerability Index adds together the rate of inflation, current account deficit and fiscal deficit of a country. The Index value can be compared across countries for different time periods to gauge their relative vulnerability.