Multiple choice

Fiscal policy means

  1. policy relating to money and banking in a country

  2. policy relating to public revenue and public expenditure

  3. policy relating to non banking financial institutions

  4. none of the above

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Fiscal policy refers to government decisions regarding revenue collection (primarily through taxation) and government expenditure. It deals with how the government manages its income and spending to influence the economy. Option B correctly captures both components of fiscal policy - public revenue (taxes, etc.) and public expenditure (government spending on infrastructure, welfare, etc.)

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