Practicing Success
Budgeting Policy includes: A. Revenue Repo Rate B. Taxes C. Public Borrowing D. Public Expenditure E. Open Market operation Choose the correct answer from the options given below : |
A, C and E only B, C and D only B, D and E only D, E and A only |
B, C and D only |
The correct answer is option (2) : B, C and D only Budgeting policy typically encompasses various fiscal tools and actions aimed at managing government finances. A. Revenue Repo Rate - This is not directly related to budgeting policy. Repo rate is a monetary policy tool used by central banks to control inflation and liquidity in the economy, not directly related to government budgeting. B. Taxes - This is a key component of budgeting policy as governments use taxation to raise revenue to fund public expenditures and manage the economy. C. Public Borrowing - Governments often resort to borrowing to finance budget deficits or fund infrastructure projects. It is an important aspect of budgeting policy. D. Public Expenditure - This refers to government spending on various sectors such as education, health, infrastructure, etc. It is a central component of budgeting policy as it reflects government priorities and economic management. E. Open Market Operation - This is a monetary policy tool used by central banks to regulate money supply and interest rates, not directly related to government budgeting. |