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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
Fiscal policy means public expenditure and tax policy of the government.
Monetary policy means regulation of money supply by the monetary authority.
The major objective of monetary policy is ______.
Name any two instruments of Fiscal Policy.
An indirect tax is not always equitable. Give two reasons to support your answer.
Give two reasons why the government imposes tax?
An indirect tax can be made progressive by imposing higher tax rates on luxuries. Justify the above statement.
How does the state fulfil the following socio-economic objective?
Reducing income inequality.
Explain the significance of taxes.
Citing reasons state the superiority of Progressive tax over regressive tax.
