The policy that deals with the tax and expenditure policies of the Government is called – (1) Monetary Policy (2) Fiscal Policy (3) Credit Policy (4) Budgetary Policy

The policy that deals with the tax and expenditure policies of the Government is called – (1) Monetary Policy (2) Fiscal Policy (3) Credit Policy (4) Budgetary Policy
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(2) Fiscal Policy Explanation: In economics and political science, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are government taxation and changes in the level and composition of taxation and government spending.
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The process by which the central bank of a country controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth is known as: A. Economic Policy B. Monetary Policy C. Fiscal Policy D. Credit Policy E. Budgetary Policy

Description : The process by which the central bank of a country controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic ... A. Economic Policy B. Monetary Policy C. Fiscal Policy D. Credit Policy E. Budgetary Policy

Last Answer : B. Monetary Policy Explanation: Monetary Policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control over ... Bank of India (RBI). is so designed as to maintain the price stability in the economy.

Fiscal policy is called as ______ policy. A. monetary. B. budgetary. C. industrial. D. economic.

Description : Fiscal policy is called as ______ policy. A. monetary. B. budgetary. C. industrial. D. economic.

Last Answer : B. budgetary.

Variation in Cash Reserve Ratio and Open Market Operations are instruments of (1) Budgetary policy (2) Trade policy (3) Fiscal policy (4) Monetary policy

Description : Variation in Cash Reserve Ratio and Open Market Operations are instruments of (1) Budgetary policy (2) Trade policy (3) Fiscal policy (4) Monetary policy

Last Answer : (4) Monetary policy Explanation: Bank Rate Policy, open market operations and variation of Cash Reserve Ratios, etc. are instruments of monetary policy. With the help of these instruments, the ... money, often targeting a rate of interest for the purpose of promoting economic growth and stability.

Variation in Cash Reserve Ratio and Open Market Operations are instruments of (1) Budgetary policy (2) Trade policy (3) Fiscal policy (4) Monetary policy

Description : Variation in Cash Reserve Ratio and Open Market Operations are instruments of (1) Budgetary policy (2) Trade policy (3) Fiscal policy (4) Monetary policy

Last Answer : Monetary policy

Deficit financing is an instrument of - (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy

Description : Deficit financing is an instrument of - (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy

Last Answer : (3) fiscal policy Explanation: In economics, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments ... financing in India means the expenditure which in excess of current revenue and public borrowing.

Deficit financing is an instrument of (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy

Description : Deficit financing is an instrument of (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy

Last Answer : fiscal policy

When there is a difference between all receipts and expenditure of the Govt. of India, both capital and revenue it is called _______ A. Income Deficit B. Fiscal Deficit C. Budgetary Deficit D. None of the Above

Description : When there is a difference between all receipts and expenditure of the Govt. of India, both capital and revenue it is called _______ A. Income Deficit B. Fiscal Deficit C. Budgetary Deficit D. None of the Above

Last Answer : C. Budgetary Deficit Explanation: A budget deficit occurs whenever a government spends more than it makes, which is nearly every year.Budgetary deficit is the difference between all receipts and expenses in both revenue and capital account of the government.

Which of the following policies is known as Annual Policy Statement? A. Annual budget of central government B. Credit and Monetary Policy of RBI C. Foreign trade policy of DGFT D. Regulations issued by SEBI E. None of the Above

Description : Which of the following policies is known as Annual Policy Statement? A. Annual budget of central government B. Credit and Monetary Policy of RBI C. Foreign trade policy of DGFT D. Regulations issued by SEBI E. None of the Above

Last Answer : B. Credit and Monetary Policy of RBI Explanation: Credit and Monetary Policy of RBI is known as Annual Policy Statement.

The Cash Reserve Ratio is a tool of : (1) Monetary policy (2) Tax policy (3) Agricultural policy (4) Fiscal policy

Description : The Cash Reserve Ratio is a tool of : (1) Monetary policy (2) Tax policy (3) Agricultural policy (4) Fiscal policy

Last Answer : (1) Monetary policy Explanation: Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as ... CRR is a crucial monetary policy tool and is used for controlling money supply in an economy.

The Cash Reserve Ratio is a tool of : (1) Monetary policy (2) Tax policy (3) Agricultural policy (4) Fiscal policy

Description : The Cash Reserve Ratio is a tool of : (1) Monetary policy (2) Tax policy (3) Agricultural policy (4) Fiscal policy 

Last Answer : Monetary policy

Custom duty is an instrument of - (1) Monetary Policy (2) Foreign Trade Policy (3) Industrial Policy (4) Fiscal Policy

Description : Custom duty is an instrument of - (1) Monetary Policy (2) Foreign Trade Policy (3) Industrial Policy (4) Fiscal Policy

Last Answer : (2) Foreign Trade Policy Explanation: Custom duty is a tax on imports imposed on an ad valorem basis, i.e, fixed in the form of a percentage on the value of the commodity imported.

Taxation is a tool of - (1) Monetary-policy (2) Fiscal policy (3) Price policy (4) Wage policy

Description : Taxation is a tool of - (1) Monetary-policy (2) Fiscal policy (3) Price policy (4) Wage policy

Last Answer : (2) Fiscal policy Explanation: In economics, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are government taxation and expenditure.

The 'Interest Rate Policy' is a component of - (1) Fiscal Policy (2) Monetary Policy (3) Trade Policy (4) Direct Control

Description : The 'Interest Rate Policy' is a component of - (1) Fiscal Policy (2) Monetary Policy (3) Trade Policy (4) Direct Control

Last Answer : (2) Monetary Policy Explanation: Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the ... . Monetary authorities in different nations have differing levels of control of economy-wide interest rates.

Custom duty is an instrument of (1) Monetary Policy (2) Foreign Trade Policy (3) Industrial Policy (4) Fiscal Policy

Description : Custom duty is an instrument of (1) Monetary Policy (2) Foreign Trade Policy (3) Industrial Policy (4) Fiscal Policy

Last Answer : Foreign Trade Policy

Taxation is a tool of (1) Monetary policy (2) Fiscal policy (3) Price policy (4) Wage policy

Description : Taxation is a tool of (1) Monetary policy (2) Fiscal policy (3) Price policy (4) Wage policy

Last Answer : Fiscal policy

The ‘Interest Rate Policy’ is a component of (1) Fiscal Policy (2) Monetary Policy (3) Trade Policy (4) Direct Control

Description : The ‘Interest Rate Policy’ is a component of (1) Fiscal Policy (2) Monetary Policy (3) Trade Policy (4) Direct Control

Last Answer : Monetary Policy

When there is a difference between all receipts and expenditure of the Government of India both capital and revenue it is called __________ A. Revenue Deficit B. Budgetary Deficit C. Zero Budgeting D. Trade Gap E. Balance of Payment Problem

Description : When there is a difference between all receipts and expenditure of the Government of India both capital and revenue it is called __________ A. Revenue Deficit B. Budgetary Deficit C. Zero Budgeting D. Trade Gap E. Balance of Payment Problem

Last Answer : B. Budgetary Deficit Explanation: Budgetary deficit is the difference between all receipts and expenses in both revenue and capital account of the government.If revenue expenses of the government ... leads to capital account deficit. Budgetary deficit is usually expressed as a percentage of GDP.

The Finance Commission – (1) draws up Five Year Plans (2) formulates Monetary Policy (3) recommends pay revision of Central Government Employees (4) adjudicates on the sharing of resources between Centre and the States

Description : The Finance Commission – (1) draws up Five Year Plans (2) formulates Monetary Policy (3) recommends pay revision of Central Government Employees (4) adjudicates on the sharing of resources between Centre and the States

Last Answer : (4) adjudicates on the sharing of resources between Centre and the States Explanation: Functions of the Finance Commission can ne explicitly stated as : (1) Distribution of net procee of taxes ... of the States so as to provide additional resources to Panchayats and Municipalities in the state.

Fical policy refers to the policy of government regarding taxtation public expenditure and ____. A. public debt. B. budgets. C. policies. D. deposits.

Description : Fical policy refers to the policy of government regarding taxtation public expenditure and ____. A. public debt. B. budgets. C. policies. D. deposits.

Last Answer : B. budgets.

What is the implication of the Central Government granting "Special Status" to a State? (1) Substantially large percentage of the central assistance will be as grantsin-aid (2) The extent of loan as a percentage of total assistance will be low (3) Current account budgetary deficit will be bridged by the Central Government (4) Both (1) and (2) above

Description : What is the implication of the Central Government granting "Special Status" to a State? (1) Substantially large percentage of the central assistance will be as grantsin-aid (2) The extent of loan as a ... account budgetary deficit will be bridged by the Central Government (4) Both (1) and (2) above

Last Answer : (4) Both (1) and (2) above Explanation: The Special category states category is meant for a specific category such as a hilly terrain and geographically difficult area where supply of public services is ... -special ones get 70 per cent of the resources as loan and remaining 30 per cent as grant.

Fiscal policy is concerned with which of the following? A. Public revenue and Expenditure B. Issue of Currency C. Export Import D. Population Control E. Education for all

Description : Fiscal policy is concerned with which of the following? A. Public revenue and Expenditure B. Issue of Currency C. Export Import D. Population Control E. Education for all

Last Answer : A. Public revenue and Expenditure Explanation: Fiscal policy is the policy relating to government revenues from taxes and expenditure on various projects. Monetary Policy, on the other hand, is mainly concerned with the flow of money in the economy.

Besides representation, the Parliament of India is also a deliberative body with diverse functions. Which one among the following is not a function of the Parliament of India? (1) Ventilating the grievances of the people (2) Executing major policy decisions (3) Holding the government accountable for its actions and expenditure (4) Amending the Constitution

Description : Besides representation, the Parliament of India is also a deliberative body with diverse functions. Which one among the following is not a function of the Parliament of India? (1) Ventilating ... (3) Holding the government accountable for its actions and expenditure (4) Amending the Constitution

Last Answer : (2) Executing major policy decisions Explanation: Our Parliamentary system blends the legislative and the executive organs of the State in as much as the executive power is wielded by a group of Members of the Legislature who command majority in the Lok Sabha.

Which of the following is an example of fiscal policy (a) Change in interest rate (b) Change in tax rate © Controlling money supply (d) Manipulating bank rate

Description : Which of the following is an example of fiscal policy (a) Change in interest rate (b) Change in tax rate © Controlling money supply (d) Manipulating bank rate

Last Answer : (b) Change in tax rate

"Economics is what it ought to be" - This statement refers to - (1) Normative economics (2) Positive economics (3) Monetary economics (4) Fiscal economics

Description : "Economics is what it ought to be" - This statement refers to - (1) Normative economics (2) Positive economics (3) Monetary economics (4) Fiscal economics

Last Answer : (1) Normative economics Explanation: Normative economics (as opposed to positive economics) is that part of economics that expresses value judgments (normative judgments) about economic fairness or what the ... statement would be, "We should cut taxes in half to increase disposable income levels".

“Economics is what it ought to be” - This statement refers to (1) Normative economics (2) Positive economics (3) Monetary economics (4) Fiscal economics

Description : “Economics is what it ought to be” - This statement refers to (1) Normative economics (2) Positive economics (3) Monetary economics (4) Fiscal economics

Last Answer : Normative economics

Which the following is an example of the use of fiscal policy by the U.S. government?

Description : Which the following is an example of the use of fiscal policy by the U.S. government?

Last Answer : The department of transportation increases speong on highway repairs. just did this on apexs

The deliberate action of the government to stabilize the economy, as opposed to the inherent automatic stabilizing properties of the fiscal system, is known as a) Forced fiscal policy b) Manual fiscal policy c) Discretionary fiscal policy d) Automatic fiscal policy

Description : The deliberate action of the government to stabilize the economy, as opposed to the inherent automatic stabilizing properties of the fiscal system, is known as a) Forced fiscal policy b) Manual fiscal policy c) Discretionary fiscal policy d) Automatic fiscal policy

Last Answer : c) Discretionary fiscal policy

Which part of the Indian Constitution deals with the Directive Principles of State Policy? (1) Part I (2) Part III (3) Part IV (4) Part. V

Description : Which part of the Indian Constitution deals with the Directive Principles of State Policy? (1) Part I (2) Part III (3) Part IV (4) Part. V

Last Answer : (3) Part IV Explanation: The Directive Principles of State Policy are guidelines to the central and state governments of India, to be kept in mind while framing laws and policies. These provisions, contained in Part IV of the Constitution of India.

Which part of the Constitution deals with the Directive Principles of State Policy? (1) Part-III (2) Part-IV (3) Part-I (4) Part-II

Description : Which part of the Constitution deals with the Directive Principles of State Policy? (1) Part-III (2) Part-IV (3) Part-I (4) Part-II

Last Answer : (2) Part-IV Explanation: The Directive Principles of State Policy, embodied in Part IV of the Constitution, are directions given to the State to guide the establishment of an economic and social democracy, as proposed by the Preamble.

Which of the following is least likely to influence the timing of new business births? A. Government policies. B. Profitability. C. Consumer expenditure. D. Weather conditions.

Description : Which of the following is least likely to influence the timing of new business births? A. Government policies. B. Profitability. C. Consumer expenditure. D. Weather conditions.

Last Answer : D. Weather conditions.

The major objective of monetary policy is to - (1) increase government's tax revenue (2) revamp the Public Distribution System (3) Promote economic growth with price stability (4) weed out corruption in the economy

Description : The major objective of monetary policy is to - (1) increase government's tax revenue (2) revamp the Public Distribution System (3) Promote economic growth with price stability (4) weed out corruption in the economy

Last Answer : (3) Promote economic growth with price stability Explanation: The main objective of monetary policy is to control the supply of money, often targeting an inflation rate or interest rate ... usually to contribute to lower unemployment, and to maintain predictable exchange rates with other currencies.

The major objective of monetary policy is to (1) increase government’s tax revenue (2) revamp the Public Distribution System (3) Promote economic growth with price stability (4) weed out corruption in the economy

Description : The major objective of monetary policy is to (1) increase government’s tax revenue (2) revamp the Public Distribution System (3) Promote economic growth with price stability (4) weed out corruption in the economy 

Last Answer : Promote economic growth with price stability

Is an example of the time lag disadvantages of fiscal policies?

Description : Is an example of the time lag disadvantages of fiscal policies?

Last Answer : state and local governments deciding to make spending cutsduring a recession

Which one among the following statements is correct? The press in democracy must (1) be free and impartial (2) be committed to the policies of the government (3) highlight the achievement of the government without criticizing its policies (4) Criticize the policies of the government

Description : Which one among the following statements is correct? The press in democracy must (1) be free and impartial (2) be committed to the policies of the government (3) highlight the achievement of the government without criticizing its policies (4) Criticize the policies of the government

Last Answer : (1) be free and impartial

Which one among the following statements is correct? The press in democracy must - (1) be free and impartial (2) be committed to the policies of the government (3) highlight the achievement of the government without criticizing its policies (4) criticize the policies of the government

Description : Which one among the following statements is correct? The press in democracy must - (1) be free and impartial (2) be committed to the policies of the government (3) highlight the achievement of the government without criticizing its policies (4) criticize the policies of the government

Last Answer : (1) be free and impartial Explanation: A press in democracy must be free and impartial.

There are different arguments given in favour of power sharing in a democratic political system. Which one of the following is not one of them? (1) It reduces conflict among different communities (2) Major community does not impose its will on others (3) Since all are affected by the policies of the government, they should be consulted in the governance of the county (4) It speeds up the decision making process and improves the chances of unity of the country

Description : There are different arguments given in favour of power sharing in a democratic political system. Which one of the following is not one of them? (1) It reduces conflict among different communities (2) ... (4) It speeds up the decision making process and improves the chances of unity of the country

Last Answer : (4) It speeds up the decision making process and improves the chances of unity of the country Explanation: Power sharing in a Democratic political System does not speeds up the decision making process and improves the chances of unity of the country.

There are different arguments given in favour of power sharing in a democratic political system. Which one of the following is not one of them? (1) It reduces conflict among different communities (2) Majority community does not impose its will on others (3) Since, all are affected by the policies of the government, they should be consulted in the governance of the country (4) It speeds up the decision-making process and improves the chances of unity of the country

Description : There are different arguments given in favour of power sharing in a democratic political system. Which one of the following is not one of them? (1) It reduces conflict among different communities (2) ... (4) It speeds up the decision-making process and improves the chances of unity of the country

Last Answer : (2) Majority community does not impose its will on others

Which among the following is not true about Pressure Groups? (1) Pressure Groups aim at capturing government. (2) Pressure Groups aim at influencing the policies of the government. (3) Pressure Groups articulates the interest of its group (4) Pressure Ginup is characterised by homogeneity of interests.

Description : Which among the following is not true about Pressure Groups? (1) Pressure Groups aim at capturing government. (2) Pressure Groups aim at influencing the policies of the government. (3) ... Groups articulates the interest of its group (4) Pressure Ginup is characterised by homogeneity of interests.

Last Answer : (1) Pressure Groups aim at capturing government Explanation: Interest group or pressure group is an association of individuals or organizations, usually organized, on the basis of one or more shared ... . It attempts to influence public policy in its favour. Unseating government is not their goal.

Which of the following is the biggest head of non-plan expenditure of Government of India? (1) Interest payments (2) Subsidies (3) Defence (4) Salaries and Wages

Description : Which of the following is the biggest head of non-plan expenditure of Government of India? (1) Interest payments (2) Subsidies (3) Defence (4) Salaries and Wages

Last Answer : (1) Interest payments Explanation: The central government expenditure itself is divided into two parts -plan expenditure and non-plan expenditure. Non Plan Expenditure is money that's spent on ... etc. Interest Payments and Debt Servicing comprise more than 30 per cent of this expenditure.

No Government Expenditure can be incurred in India except with the sanction of (1) the Parliament (2) the Prime Minister (3) the President (4) the Supreme Court

Description : No Government Expenditure can be incurred in India except with the sanction of (1) the Parliament (2) the Prime Minister (3) the President (4) the Supreme Court

Last Answer : (1) the Parliament Explanation: Legislative prerogative over taxation, legislative control over expenditure and executive initiative in financial matters are some of the fundamental principles of the system of ... year, cause to be laid before Parliament, Annual Financial Statement (article 112).

Recommendations to the President of India on the specific Union state fiscal relation are made by the- (1) Finance Minister (2) Reserve Bank of India (3) Planning Commission (4) Finance Commission

Description : Recommendations to the President of India on the specific Union state fiscal relation are made by the- (1) Finance Minister (2) Reserve Bank of India (3) Planning Commission (4) Finance Commission

Last Answer : (4) Finance Commission Explanation: The finance commission made recommendations to the president of India on the specific union state fiscal relation.

Which of the following is not a primary concern for your Finance Department? a. Acquiring capital b. Setting credit policies for customers and suppliers c. Employee turnover d. Establishing a dividend policy e. Capital structure of the firm

Description : Which of the following is not a primary concern for your Finance Department? a. Acquiring capital b. Setting credit policies for customers and suppliers c. Employee turnover d. Establishing a dividend policy e. Capital structure of the firm

Last Answer : c. Employee turnover

Your finance department is primarily concerned with a. acquiring the capital needed for company activities. b. establishing a dividend policy that maximizes the return to shareholders. c. setting credit policies for customers and suppliers. d. profits. e. all of the above.

Description : Your finance department is primarily concerned with a. acquiring the capital needed for company activities. b. establishing a dividend policy that maximizes the return to shareholders. c. setting credit policies for customers and suppliers. d. profits. e. all of the above.

Last Answer : e. all of the above.

Which one of the following is not a function of the central bank in an economy? (1) Dealing with foreign exchange (2) Controlling monetary policy (3) Controlling government spending (4) Acting as a banker's bank

Description : Which one of the following is not a function of the central bank in an economy? (1) Dealing with foreign exchange (2) Controlling monetary policy (3) Controlling government spending (4) Acting as a banker's bank

Last Answer : (3) Controlling government spending Explanation: A central bank, reserve bank, or monetary authority is a public institution that manages a state’s currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries.

The monetary policy is India is formulated by - (1) Central Government (2) Industrial Financial Corporation of India (3) Reserve Bank of India (4) Industrial Development Bank of India

Description : The monetary policy is India is formulated by - (1) Central Government (2) Industrial Financial Corporation of India (3) Reserve Bank of India (4) Industrial Development Bank of India

Last Answer : (3) Reserve Bank of India Explanation: Monetary policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control ... Bank of India (RBI). is so designed as to maintain the price stability in the economy.

The monetary policy is India is formulated by (1) Central Government (2) Industrial Financial Corporation of India (3) Reserve Bank of India (4) Industrial Development Bank of India

Description : The monetary policy is India is formulated by (1) Central Government (2) Industrial Financial Corporation of India (3) Reserve Bank of India (4) Industrial Development Bank of India 

Last Answer :  Reserve Bank of India

Which one of the following is not a function of the central bank in an economy ? (1) Dealing with foreign exchange (2) Controlling monetary policy (3) Controlling government spending (4) Acting as a banker’s bank

Description : Which one of the following is not a function of the central bank in an economy ? (1) Dealing with foreign exchange (2) Controlling monetary policy (3) Controlling government spending (4) Acting as a banker’s bank

Last Answer : Controlling government spending

The existence of a Parallel Economy or Black Money - (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment

Description : The existence of a Parallel Economy or Black Money - (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment

Last Answer : (2) makes the monetary policies less effective Explanation: In India, Black money refers to funds earned on the black market, on which income and other taxes has not been paid. Black money ... a policy. So, in nutshell, the existence of parallel economy erodes the effectiveness of monetary policies.

The existence of a parallel economy or Black Money - (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment

Description : The existence of a parallel economy or Black Money - (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment

Last Answer : (2) makes the monetary policies less effective Explanation: The existence of black money is injurious not just for tax revenues. It distorts the systematic resource allocation process and upsets the ... . So the existence of black money erodes the very rationale of growth behind monetary policies.

The existence of a Parallel Economy or Black Money (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment

Description : The existence of a Parallel Economy or Black Money (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment

Last Answer : makes the monetary policies less effective