Question : Custom duty is an instrument of
Option 1: Monetary policy
Option 2: Foreign trade policy
Option 3: Industrial policy
Option 4: Fiscal policy
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Correct Answer: Foreign trade policy
Solution : The correct answer is foreign trade policy .
Custom duty is also used in foreign trade policy. A system of laws and regulations that manage the movement of commodities and services between nations is known as foreign trade policy. Governments use foreign trade policy to achieve many economic purposes, including protecting domestic sectors, promoting exports and regulating trade.
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