Monetary Policy VS Fiscal Policy- Indian Economy

Which of the following pairs is not correct?

(i) Fiscal Policy – Taxation

(ii) Monetary Policy – Cash Reserve Ratio

(iii) RBI – Rationing of Credit

(iv) Credit Control – Issue of Currency Notes

(A) (i) and (ii)

(B) (ii) and (iii)

(C) (iii) only

(D) (iv) only

EXPLANATION

(i) Fiscal Policy – Taxation ✅ Correct

Fiscal Policy refers to the use of government revenue and expenditure to influence the economy.
Taxation and public spending are the main tools of fiscal policy.
Hence, this pair is correct.

(ii) Monetary Policy – Cash Reserve Ratio (CRR) ✅ Correct

Monetary Policy is formulated by the Reserve Bank of India (RBI) to control money supply and credit in the economy.
Cash Reserve Ratio (CRR) is one of its quantitative instruments.
This pair is correct.

(iii) RBI – Rationing of Credit ✅ Correct

Rationing of Credit means limiting the amount of credit to be granted by banks.
It is a qualitative credit control measure used by the RBI.
So, this pair is correct.

(iv) Credit Control – Issue of Currency Notes ❌ Incorrect

Credit Control refers to regulating the availability and cost of credit in the economy (through CRR, Repo Rate, etc.).
Issue of Currency Notes is not a credit control measure; it is a monetary function of the RBI under the RBI Act, 1934.
Therefore, this pair is not correct.