Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

It is 28th January, Meena and Ritu are discussing about government budget which is going to be presented in the Parliament on 1st February. Ritu said, " We must listen to the government budget live on 1st February as it is of national significance and is an important monetary policy instrument.". What do you think about Ritu's statement?

Options:

 The statement is true

The statement is false

The statement is partially true 

The statement is partially false

Correct Answer:

The statement is false

Explanation:

Government budget falls under the "Fiscal" policies of the government and not monetary policies. "Monetary" policy refers to a set of actions by RBI to control a nation's overall money supply.