Customs duty is an instrument of which of the following government policies?
- AFiscal
- BMonetary
- CSales
- DProduction
Solution & Step-by-step Explanation
Customs duty is a tax imposed on imports and exports of goods. Government revenue collection through taxation and government expenditure fall under the purview of Fiscal Policy. On the other hand, Monetary Policy is regulated by the central bank (like RBI) to manage money supply and interest rates.