Question
Which one of the following is not a fiscal instruments?
This question was previously asked in
TNPSC Group 1 Prelims 2026 GS Question Paper (27-Sep-2026)
The correct answer is
Bank Rate
Fiscal policy is the government's use of its budget to influence the economy, and it works through taxation, public expenditure and public borrowing or debt.
Monetary policy, on the other hand, is run by the central bank (the Reserve Bank of India) and uses tools such as the bank rate, repo rate, cash reserve ratio and open market operations.
Taxation, public expenditure and public debt are therefore fiscal instruments, while the bank rate is a monetary instrument.
Hence, Bank Rate.
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Important Questions from Tax Structure In India
- GST is a/an
- Which one of the following has the largest contribution to the Gross Tax Revenue of Government of India in 2019-20 (BE)?
- Under Section 10(26) of the Income Tax Act, which of the following category of people are exempted from income tax?
- Which of the statements given below is/are correct?
1. In India, the provisions of General Anti-Avoidance Rule (GAAR) will be implemented with effect from 1 April 2015
2. The provisions of GAAR were aimed at checking tax avoidance by overseas investors
Select the correct answer using the code given below : - The tax imposed on import and export of commodity is known as
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