Question

Which of the following is not a fiscal instrument for mobilising resources?

• A. Public expenditure
• B. Taxation
• C. Borrowing
• D. Printing currency

Answer 1

The correct option is D

Printing currency

Fiscal instruments such as taxation, borrowing, public expenditure, deficit financing, etc., are used for mobilisation of resources to achieve a higher rate of growth and to remove inequalities in the distribution of income and wealth.