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प्रश्न
Distinguish between fiscal policy and monetary policy.
State one important difference between fiscal and monetary policy.
अंतर स्पष्ट करें
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उत्तर
| Sr. No. | Fiscal Policy | Monetary Policy |
| 1. | Fiscal policy is the policy of taxation and government expenditure. | Monetary policy is the policy of central bank to control the supply of money and credit in the economy. |
| 2. | Fiscal policy affects the overall expenditure in the economy. | Changes in money supply and credit lead to change in interest rates. |
| 3. | Its instruments are: taxes, public debt, deficit financing and govt. expenditure. | Its instruments are: Bank rate, open market operations, CRR, SLR, margin requirement etc. |
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Notes
Students should refer to the answer according to their questions.
Role of State in Economic Development
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संबंधित प्रश्न
Instruments of fiscal policy is:
The state can promote economic development by ______.
Define direct tax
Define a degressive tax.
Classify the following type of tax into direct and indirect taxes:
Entertainment tax
Explain how indirect taxes can be inflationary.
How does the state fulfil the following socio-economic objective?
Reducing income inequality.
State two differences between income tax and commodity tax.
Explain how tax can be used as an instrument to regulate consumption and production in an economy.
Explain the term Incidence of a tax.
