Question Bank - Law Officer

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Tax reforms are concerned with the reforms in government taxation and public expenditure policies which are collectively known as ______.

A.
debit policy
B.
credit policy
C.
fiscal policy
D.
profit policy

Solution:

The correct answer is fiscal policyTax reforms are concerned with the reforms in government taxation and public expenditure policies which are collectively known as fiscal policy.Fiscal policies are being controlled by the government.The aim of these policies is to target the total level of spending and the total composition of spending in an economy.Monetary policies are policies used to either stimulate an economy or to check its growth.Cash reserve ratio, the repo rate, reverse repo rate are some monetary policies.It is being controlled by the Reserve bank.

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