BANKING AFFAIRS

Detailed explanation-1: -To increase liquidity in economy is not the main objective of Fiscal Policy in India.

Detailed explanation-2: -Objectives of Fiscal Policy The following are the objectives of the Fiscal Policy: Higher Economic Growth. Price Stability. Reduction in Inequality.

Detailed explanation-3: -Some of the key objectives of fiscal policy are economic stability, price stability, full employment, optimum allocation of resources, accelerating the rate of economic development, encouraging investment, and capital formation and growth.

Detailed explanation-4: -The correct answer is Interest Rate. Interest Rate does not form part of the fiscal policy of a country. Fiscal policy is the use of government revenue collection (mainly taxes but also non-tax revenues such as divestment, loans) and expenditure (spending) to influence the economy.

Detailed explanation-5: -The primary objective of the fiscal policy is to regulate the case of economic stability, full employment and stabilize the growth rate. It is often optimized with monetary policy, including the banking system, the supply of money in circulation and the management of interest rates.