Question

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

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

Answer 1

The correct option is A

Printing currency

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