Q. Federal Reserve Tools Fiscal Policy Tools Discount rate taxing Reserve Requirement spending borrowing One tool is missing from the Federal Reserve’s list of tools. Taxes. Fiscal policy tools can achieve, or at least attempt to achieve, both economic and political goals. Local referendums. Want to see this answer and more? answer choices . 6. Practice FP questions for the test. Want to see the step-by-step answer? Choose the 2 answers below that are fiscal policy tools of the Federal Government. this is the release and subsctraction of amount of money in economy by variuos tools (like loans to banks). Fiscal Policy refers to the methods employed by the government to influence and monitor the economy by adjusting taxes and/or public spending. On the one hand, more taxes means more income for the government, but it also results in less income in the hand of the people. c) Finance Ministry. Taxation includes taxes on income, property, sales, and investments. Step-by-step answers are written by subject experts who are available 24/7. A government has two tools at its disposal under the fiscal policy – taxation and public spending. There are four monetary policy tools: open market operations , which is the buying and selling of government bonds; and changes to reserve requirements, the discount rate, and the interest paid on required and excess reserves. * d) Securities and Exchange Board of India. The main fiscal policy tools are taxation and spending; in contrast, monetary policy involves the availability and cost of money, or more specifically, credit. check_circle Expert Answer. fiscal policy tools. Top Answer. ... policy is one that containes money. Questions are typically answered in as fast as 30 minutes. Check out a sample Q&A here. Answer : c. Question 2 : Fiscal policy in India is formulated by. Fiscal policy refers to use of government expenditure, taxation policies for influencing macro economic situation of country.J M Keynes was major economist who suggest use of fiscal policy to influenc view the full answer Please refer to the following chart to answer question number 1. Answer. 5. This is the main tool through which the government collects money from the public. If the economy was going into a recession, what … 30 seconds . The main tools of the fiscal policy of any government are two. Start studying Practice Fiscal Policy Questions. Government Spending. See Answer. Tixes a. b. c. fullscreen. b) Planning Commission. Learn vocabulary, terms, and more with flashcards, games, and other study tools. a) Reserve Bank of India. During a recession, by lowering taxes or increasing government spending, fiscal policy Let’s have a look at them – #1 – Taxes. Fiscal policy is one of two main types of control a government or its agencies can exercise over an economy. 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