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What is the main difference between fiscal policy and monetary policy?
  • a)
    Fiscal policy is administered by the central bank, while monetary policy is administered by the Ministry of Finance.
  • b)
    Fiscal policy focuses on regulating the money supply, while monetary policy influences the overall demand and supply for goods.
  • c)
    Fiscal policy involves adjusting interest rates, while monetary policy involves managing government expenditure.
  • d)
    Fiscal policy uses taxation and government spending, while monetary policy uses tools like interest rates and credit ratios.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
What is the main difference between fiscal policy and monetary policy?...
The main difference between fiscal policy and monetary policy lies in the tools and methods used to achieve their respective goals. Fiscal policy involves using taxation and government spending to influence the economy, while monetary policy uses tools like interest rates, reserve requirements, and open market operations to regulate the money supply and credit conditions.
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What is the main difference between fiscal policy and monetary policy?a)Fiscal policy is administered by the central bank, while monetary policy is administered by the Ministry of Finance.b)Fiscal policy focuses on regulating the money supply, while monetary policy influences the overall demand and supply for goods.c)Fiscal policy involves adjusting interest rates, while monetary policy involves managing government expenditure.d)Fiscal policy uses taxation and government spending, while monetary policy uses tools like interest rates and credit ratios.Correct answer is option 'D'. Can you explain this answer?
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What is the main difference between fiscal policy and monetary policy?a)Fiscal policy is administered by the central bank, while monetary policy is administered by the Ministry of Finance.b)Fiscal policy focuses on regulating the money supply, while monetary policy influences the overall demand and supply for goods.c)Fiscal policy involves adjusting interest rates, while monetary policy involves managing government expenditure.d)Fiscal policy uses taxation and government spending, while monetary policy uses tools like interest rates and credit ratios.Correct answer is option 'D'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the main difference between fiscal policy and monetary policy?a)Fiscal policy is administered by the central bank, while monetary policy is administered by the Ministry of Finance.b)Fiscal policy focuses on regulating the money supply, while monetary policy influences the overall demand and supply for goods.c)Fiscal policy involves adjusting interest rates, while monetary policy involves managing government expenditure.d)Fiscal policy uses taxation and government spending, while monetary policy uses tools like interest rates and credit ratios.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the main difference between fiscal policy and monetary policy?a)Fiscal policy is administered by the central bank, while monetary policy is administered by the Ministry of Finance.b)Fiscal policy focuses on regulating the money supply, while monetary policy influences the overall demand and supply for goods.c)Fiscal policy involves adjusting interest rates, while monetary policy involves managing government expenditure.d)Fiscal policy uses taxation and government spending, while monetary policy uses tools like interest rates and credit ratios.Correct answer is option 'D'. Can you explain this answer?.
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