Which of the following is NOT a tool of fiscal policy ?

Correct Answer: B. Interest rate

Explanation: Fiscal policy is the use of government spending and taxation to influence economic outcomes like GDP Growth, Socioeconomic goals,Inflation, income distribution, etc. Tools of fiscal policy Taxation Public Expenditure Investment and disinvestment policy Deficit financing Interest rate is a tool of the monetary policy of the RBI. Tools of monetary policy Quantitative Tools Qualitative Tools 1. Statutory Liquidity Moral Suasion Ratio (SLR) 2. Cash Reserve Ratio Margin Requirements (CRR)