June 2015

1:

From the following, identify the tools of fiscal policy:

(i) Public expenditure

(ii) Open market operations

(iii) Deficit financing

(iv) Taxation

(v) Reserve requirements

A.

(i), (iii), (iv) and (v)

B.

(i), (ii), (iv) and (v)

C.

(ii) and (v)

D.

(i), (iii) and (iv)

 

Answer : D

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Option: A

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