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प्रश्न
Distinguish between fiscal policy and monetary policy.
State one important difference between fiscal and monetary policy.
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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. |
Notes
Students should refer to the answer according to their questions.
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संबंधित प्रश्न
Which of the following is an advantage of direct taxes?
Taxes in which the rate of tax remains the same, though the tax bases changes are called ______.
Instrument of monetary policy is:
Identify the tax which is most likely to faster civic conciousness.
Wealth tax is an example of:
Name any two instruments of Fiscal Policy.
Citing reason state the advantage of a direct tax over an indirect tax.
How does the state fulfil the following socio-economic objective?
Promoting industrial growth.
How does the state fulfil the following socio-economic objective?
Environmental protection.
Three demerits of an Indirect tax.
