What is monetary policy and fiscal policy PPT?

MONETARY and FISCAL POLICY– PPT. 1. MONETARY POLICY Monetary policy refers to the use of instruments under the control of the central bank (RBI) to regulate the availability, cost and use of money and credit.

What is monetary and fiscal policy PDF?

Monetary policy refers to central bank activities that are directed toward influencing the quantity of money and credit in an economy. By contrast, fiscal policy refers to the government’s decisions about taxation and spending. Both monetary and fiscal policies are used to regulate economic activity over time.

What are the three types of fiscal policy?

There are three main types of fiscal policy – neutral policy, expansionary, and contractionary.

What is monetary policy and fiscal policy in India?

Monetary policies are formed and managed by the central banks of a country and such a policy is concerned with the management of money supply and interest rates in an economy. Fiscal policy is related to the way a government is managing the aspects of spending and taxation.

Who controls fiscal and monetary policy?

The short answer is that Congress and the administration conduct fiscal policy, while the Fed conducts monetary policy. Both types of policy can have a significant effect on our everyday lives, but the lines between them can seem blurry to the average consumer.

What are the 2 tools of fiscal policy?

The two main tools of fiscal policy are taxes and spending. Taxes influence the economy by determining how much money the government has to spend in certain areas and how much money individuals should spend.

What is monetary policy and its types?

There are two main kinds of monetary policy: contractionary and expansionary. Contractionary monetary policy: This type of policy is used to decrease the amount of money circulating throughout the economy, typically by selling government bonds, raising interest rates, and increasing the reserve requirements for banks.