What is the primary concern of fiscal policy?

QUESTION 7
What is the primary concern of fiscal policy?
B. Raise money to finance government expenditure through taxation.
Fiscal policy primarily involves the government's use of taxation and spending to influence the economy.
The correct option is $\boxed{\text{B}}$.

QUESTION 8
Budget is defined as
B. planned expected income and expenditure over a period of time.
A budget is a financial plan that estimates future income and expenses.
The correct option is $\boxed{\text{B}}$.

QUESTION 9
Tax can be defined as a
A. compulsory transfer of wealth from the private sector to the public sector.
Taxes are mandatory financial charges imposed by a government on individuals or businesses.
The correct option is $\boxed{\text{A}}$.

QUESTION 10
Which of the following best explains the personal income tax?
D. It is a direct tax imposed on salaries and wages.
Personal income tax is a direct tax levied on an individual's earnings.
The correct option is $\boxed{\text{D}}$.

PART B: SHORT ANSWER QUESTIONS

QUESTION 11
Define Monetary Policy
Monetary policy refers to actions undertaken by a central bank to control the money supply and credit conditions to influence economic activity, such as inflation, economic growth, and employment.

QUESTION 12
List at least two instruments of Monetary Policy.

• Open market operations (buying or selling government securities)
• Interest rates (e.g., the policy rate or discount rate)
• Reserve requirements (the fraction of deposits banks must hold in reserve)

QUESTION 13
What is budget surplus?
A budget surplus occurs when a government's revenue (e.g., from taxes) exceeds its expenditures (spending) over a specific period.