BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Which one of the following is not an objective of fiscal policy of Indian Government?

A	Full employment
B	Regulation of Inter-State-trade
C	Price stability
D	Equitable distribution of wealth & income

Explanation:

Detailed explanation-1: -Regulation of international trade is not an objective of fiscal policy. Fiscal policy is made just for better utilization of financial resources of Government of India.

Detailed explanation-2: -To increase liquidity in economy is not the main objective of Fiscal Policy in India.

Detailed explanation-3: -Objectives of Fiscal Policy The following are the objectives of the Fiscal Policy: Higher Economic Growth. Price Stability. Reduction in Inequality.

Detailed explanation-4: -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-5: -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.

There is 1 question to complete.