New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following does NOT form part of a country's

    fiscal policy?
    A Investment or disinvestment strategies Correct Answer Incorrect Answer
    B Tax policy Correct Answer Incorrect Answer
    C Supply of money in the economy Correct Answer Incorrect Answer
    D Debt or surplus management Correct Answer Incorrect Answer

    Solution

    Fiscal policy focuses on government spending, taxation, and debt management to influence the economy. The supply of money in the economy is primarily controlled by monetary policy, which is the responsibility of a central bank. While interest rates can be affected by fiscal policy, they are not a direct tool of fiscal policy.

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