State with reason whether you agree or disagree : There are no limitations of Index Number.

Answer: I disagree with the statement.

Reasons: Index numbers are useful, but they have several limitations:

1. Based on samples: Only a sample of items is selected, so they may not represent all items fully.
2. Difficulty in choosing a base year: A normal base year free from abnormal events is hard to find.
3. Changes in quality and tastes ignored: Changes in quality of goods and in consumption patterns over time are not reflected.
4. Different methods give different results: The choice of formula, average and weights affects the result.
5. Not useful for international comparison: Items, weights and base years differ across countries.
6. Possibility of misuse: Items, weights and base year can be manipulated to get desired results.
7. Only approximate: They show only an approximate indication of relative change.