{"id":85961,"date":"2025-06-01T03:33:11","date_gmt":"2025-06-01T03:33:11","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=85961"},"modified":"2025-06-01T03:33:11","modified_gmt":"2025-06-01T03:33:11","slug":"indexation-is-a-method-whose-use-can-be-associated-with-which-one-of-t","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/indexation-is-a-method-whose-use-can-be-associated-with-which-one-of-t\/","title":{"rendered":"Indexation is a method whose use can be associated with which one of t"},"content":{"rendered":"

Indexation is a method whose use can be associated with which one of the following ?<\/p>\n

[amp_mcq option1=”Controlling inflation” option2=”Nominal GDP estimation” option3=”Measurement of savings rate” option4=”Fixing of wage compensation” correct=”option4″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CDS-2 – 2019<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
Indexation is a technique used to adjust payments or values to offset the effects of inflation. It is commonly applied to wages and salaries (often through Cost of Living Adjustments – COLA), pensions, social security benefits, and bond yields, among others, to maintain their real purchasing power. Thus, it is directly associated with the fixing or adjustment of wage compensation (and other forms of payment).<\/section>\n
Indexation links a monetary payment or value to a price index, such as the Consumer Price Index (CPI), so that it rises automatically as the index rises.<\/section>\n
While indexation helps individuals cope with inflation by adjusting their income or payments, it is not a tool for controlling inflation (Option A). Nominal GDP estimation (Option B) is based on current prices, not indexation, although indexation is used to convert nominal GDP to real GDP. Measurement of savings rate (Option C) is a calculation based on income and consumption, not directly related to indexation as a method.<\/section>\n","protected":false},"excerpt":{"rendered":"

Indexation is a method whose use can be associated with which one of the following ? [amp_mcq option1=”Controlling inflation” option2=”Nominal GDP estimation” option3=”Measurement of savings rate” option4=”Fixing of wage compensation” correct=”option4″] This question was previously asked in UPSC CDS-2 – 2019 Download PDFAttempt Online Indexation is a technique used to adjust payments or values to … <\/p>\n

Detailed SolutionIndexation is a method whose use can be associated with which one of t<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1088],"tags":[1119,1120,1174],"class_list":["post-85961","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-2","tag-1119","tag-economic-development","tag-national-income-gross-domestic-product","no-featured-image-padding"],"yoast_head":"\nIndexation is a method whose use can be associated with which one of t<\/title>\n<meta name=\"description\" content=\"Indexation is a technique used to adjust payments or values to offset the effects of inflation. It is commonly applied to wages and salaries (often through Cost of Living Adjustments - COLA), pensions, social security benefits, and bond yields, among others, to maintain their real purchasing power. Thus, it is directly associated with the fixing or adjustment of wage compensation (and other forms of payment). Indexation links a monetary payment or value to a price index, such as the Consumer Price Index (CPI), so that it rises automatically as the index rises.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/indexation-is-a-method-whose-use-can-be-associated-with-which-one-of-t\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Indexation is a method whose use can be associated with which one of t\" \/>\n<meta property=\"og:description\" content=\"Indexation is a technique used to adjust payments or values to offset the effects of inflation. It is commonly applied to wages and salaries (often through Cost of Living Adjustments - COLA), pensions, social security benefits, and bond yields, among others, to maintain their real purchasing power. Thus, it is directly associated with the fixing or adjustment of wage compensation (and other forms of payment). Indexation links a monetary payment or value to a price index, such as the Consumer Price Index (CPI), so that it rises automatically as the index rises.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/indexation-is-a-method-whose-use-can-be-associated-with-which-one-of-t\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T03:33:11+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Indexation is a method whose use can be associated with which one of t","description":"Indexation is a technique used to adjust payments or values to offset the effects of inflation. It is commonly applied to wages and salaries (often through Cost of Living Adjustments - COLA), pensions, social security benefits, and bond yields, among others, to maintain their real purchasing power. Thus, it is directly associated with the fixing or adjustment of wage compensation (and other forms of payment). Indexation links a monetary payment or value to a price index, such as the Consumer Price Index (CPI), so that it rises automatically as the index rises.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/indexation-is-a-method-whose-use-can-be-associated-with-which-one-of-t\/","og_locale":"en_US","og_type":"article","og_title":"Indexation is a method whose use can be associated with which one of t","og_description":"Indexation is a technique used to adjust payments or values to offset the effects of inflation. It is commonly applied to wages and salaries (often through Cost of Living Adjustments - COLA), pensions, social security benefits, and bond yields, among others, to maintain their real purchasing power. Thus, it is directly associated with the fixing or adjustment of wage compensation (and other forms of payment). Indexation links a monetary payment or value to a price index, such as the Consumer Price Index (CPI), so that it rises automatically as the index rises.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/indexation-is-a-method-whose-use-can-be-associated-with-which-one-of-t\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T03:33:11+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/indexation-is-a-method-whose-use-can-be-associated-with-which-one-of-t\/","url":"https:\/\/exam.pscnotes.com\/mcq\/indexation-is-a-method-whose-use-can-be-associated-with-which-one-of-t\/","name":"Indexation is a method whose use can be associated with which one of t","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T03:33:11+00:00","dateModified":"2025-06-01T03:33:11+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"Indexation is a technique used to adjust payments or values to offset the effects of inflation. It is commonly applied to wages and salaries (often through Cost of Living Adjustments - COLA), pensions, social security benefits, and bond yields, among others, to maintain their real purchasing power. Thus, it is directly associated with the fixing or adjustment of wage compensation (and other forms of payment). Indexation links a monetary payment or value to a price index, such as the Consumer Price Index (CPI), so that it rises automatically as the index rises.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/indexation-is-a-method-whose-use-can-be-associated-with-which-one-of-t\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/indexation-is-a-method-whose-use-can-be-associated-with-which-one-of-t\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/indexation-is-a-method-whose-use-can-be-associated-with-which-one-of-t\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC CDS-2","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-cds-2\/"},{"@type":"ListItem","position":3,"name":"Indexation is a method whose use can be associated with which one of t"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/85961","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=85961"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/85961\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=85961"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=85961"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=85961"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}