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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
The state can promote economic development by ______.
A policy under which the government uses its expenditure and revenue to produce desirable effect and avoid undesirable effects on the national income, production and employment. This defines ______.
The tax whose rate remains unchanged irrespective of the income of the taxpayer is called as ______.
Define fiscal policy.
'The role of the State is important in developing the economic infrastructure of a developing economy'. Give two reasons to support your answer.
State the difference between income tax and expenditure tax.
Classify the following type of tax into direct and indirect taxes:
Income tax
What is meant by regressive taxation?
How does the state fulfil the following socio-economic objective?
Reducing income inequality.
Explain briefly two merits of indirect tax.
