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Question
Monetary policy means regulation of money supply by the monetary authority.
Options
True
False
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Solution
This statement is True.
Explanation:
Monetary policy is how the central bank or other monetary body of a country controls the amount of money in the economy and interest rates.
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RELATED QUESTIONS
The essential feature of a tax.
Taxes in which the rate of tax remains the same, though the tax bases changes are called ______.
Match the following and select the correct option:
| Column A | Column B | ||
| (i) | Taxes imposed on income and wealth | A. | Regressive |
| (ii) | Taxes imposed on goods and services | B. | Progressive |
| (iii) | A tax system where the rate of tax decreases with increase income | C. | Direct taxes |
| (iv) | A tax system where the rate of tax increases as income increase | D. | Indirect taxes |
The tax whose rate remains unchanged irrespective of the income of the taxpayer is called as ______.
Match the following:
| Column I | Column II | ||
| A. | Direct tax | (i) | Tax rate increases with tax base |
| B. | Indirect tax | (ii) | Tax rate remains constant |
| C. | Proportional tax | (iii) | Imposed on goods and services |
| D. | Progressive tax | (iv) | Impact and incidence lie on the same person |
Distinguish between fiscal policy and monetary policy.
Differentiate between direct and indirect taxes.
Give one example of progressive tax.
Give two reasons why the government imposes tax?
Explain briefly two merits of indirect tax.
