Question on Banking Policies and Controls
1. What is Fiscal Policy? Fiscal policy is the use of government spending and revenue collection to influence the economy. These policies affect tax rates, interest rates and government spending, in an effort to control the economy. Fiscal policy is an additional method to determine public revenue and public expenditure. 2. What is Fiscal Deficit? It is the difference between the government’s total receipts (excluding borrowings) and total expenditure. 3. What is National Income? National Income is the money value of all goods and services produced in a Country during the year.
