Consider the following:
(A) Bank Rate Policy
(B) Open Market Operations
(C) Devaluation of Rupee
Which of the above are called fiscal measures?

Only (A)

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Both (A) and (B)

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Both (A) and (C)

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Only (C)

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D Only (C)
Bank Rate and Open Market Operations are quantitative methods of credit control used by RBI.
Devaluation is deliberate downward adjustment of a country's currency. Devaluing a currency reduces the cost of a country's exports and can help shrink trade deficits. Thus it is a fiscal measure used by the government.

Suggest Corrections

Similar questions

Consider the following recommendations:

1.RBI should target only on reducing inflation and use only a single instrument to keep inflation under control;

2.Foreign investors should be allowed to invest in government bond market;

3.Government should sell small under-performing public sector banks;

4.Banks should be allowed to open branches and ATMs everywhere without restrictions.

Which of the above are among the draft recommendations of the RaghuramRajan Committee on Financial Sector Reforms?

Join BYJU'S Learning Program