Which one of the following is not an instrument of Fiscal policy?
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Which one of the following is not an instrument of Fiscal policy?
✓ Correct answer: a) Open Market Operations
ExplanationFiscal policy uses tools like taxation, public expenditure, and public borrowing to influence the economy.Open Market Operations (OMO) are a monetary policy tool used by the RBI to control money supply and interest rates, not part of fiscal policy.So, while taxation, borrowing, and expenditure are fiscal instruments, OMO is not.
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