Discussion
Match the following type :
| Item | Related to |
|---|---|
| (a) Fiscal Policy | 1. Issue of Currency Notes |
| (b) Monetary Policy | 2. Rationing of Credit |
| (c) RBI | 3. Cash Reserve Ratio |
| (d) Credit Control | 4. Taxation |
Codes (a), (b), (c), (d):
Answer: A
The match is fiscal policy with taxation (4), monetary policy with the cash reserve ratio (3), RBI with the issue of currency notes (1) and credit control with rationing of credit (2), the code 4 3 1 2.
The other codes mismatch fiscal and monetary policy, which is the main distinction in the question.
Fiscal policy is the use of taxation and spending by the government, monetary policy is carried out by the central bank through tools like the cash reserve ratio, the RBI issues currency notes, and credit control includes qualitative measures such as rationing of credit. The code 4 3 1 2 follows this classification.
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