Which of the following indices is developed to measure life expectancy, education level, literacy and standard of living of people in a country?

Introduction / Context:
This question belongs to the topic of development indicators. Traditional measures such as GDP per capita look only at economic output, but modern approaches also consider health, education, and living standards. The Human Development Index was developed to provide a more comprehensive measure of development across countries and is widely used in United Nations reports and competitive examinations.

Given Data / Assumptions:

• The variables mentioned are life expectancy, literacy, education, and standard of living.
• Several indices are listed, including inflation indices, share market indices, and HDI.
• We must select the index that combines these human development dimensions.

Concept / Approach:
The Human Development Index is a composite index that typically includes three main dimensions: health (measured by life expectancy at birth), education (measured by indicators such as mean years of schooling and expected years of schooling), and standard of living (measured by gross national income per capita). It is specifically designed to move beyond purely economic measures and to capture human well being. Inflation indices and financial market indices measure very different things and do not include all these dimensions.

Step-by-Step Solution:
Step 1: Focus on the combination of health, education, and income or living standards mentioned in the question.Step 2: Recall that HDI is defined using life expectancy, education indicators, and income per person.Step 3: Inflation indices such as Consumer Price Index and Wholesale Price Index measure price changes, not education or life expectancy.Step 4: Sensex tracks share prices of selected companies on the stock exchange, which is related to capital markets rather than human development.Step 5: Statutory Liquidity Ratio is a banking regulation ratio and has nothing to do with human development measurement. Therefore, HDI is the correct answer.

Verification / Alternative check:
If you regularly read United Nations Development Programme reports or summaries in newspapers, you will see annual rankings of countries by the Human Development Index. These rankings are always discussed in terms of how long people live, how educated they are, and what their average incomes are. No other index among the options is described in this way, which confirms that HDI is the one that matches the variables listed in the question.

Why Other Options Are Wrong:
Inflation indices measure how fast prices are rising for a basket of goods, which affects purchasing power but does not directly incorporate education or health in their formula. Sensex is a stock market index used to track the performance of major shares on the exchange and is primarily a financial indicator. Statutory Liquidity Ratio is a regulatory requirement for banks to hold a certain percentage of deposits in specified liquid assets. Wholesale Price Index focuses on price changes at the wholesale level, not human development dimensions.

Common Pitfalls:
Some learners confuse HDI with purely economic indices such as GDP per capita or stock indices because all appear in economic news. Others may not remember which development index uses what components. To avoid confusion, it is helpful to make a short list during revision linking HDI to life expectancy, education, and standard of living, and to remember that it is published in the Human Development Report of the United Nations Development Programme.

Final Answer:
The index developed to measure life expectancy, literacy, education, and standard of living is the Human Development Index (HDI).