Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

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 :

Options:

A, C and E only

B, C and D only

B, D and E only

D, E and A only

Correct Answer:

B, C and D only

Explanation:

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.