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प्रश्न
Distinguish between fiscal policy and monetary policy.
State one important difference between fiscal and monetary policy.
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
______ are those taxes which are paid by the same person on whom they have been imposed.
Which of the following is an advantage of direct taxes?
Name any two instruments of Fiscal Policy.
Define Indirect tax
State the difference between income tax and expenditure tax.
Citing reason state the advantage of a direct tax over an indirect tax.
Give an example of Indirect tax.
Explain how tax can be used as an instrument to regulate consumption and production in an economy.
State the four merits of a direct tax.
Differentiate between progressive and regressive taxes giving an example for each.
