From the following, identify the tools of fiscal policy.
1. Public expenditure
2. Open market operations
3. Deficit financing
4. Taxation
5. Reserve requirements
Select the correct answer:

A. 1, 3, 4 and 5

B. 1, 2, 4 and 5

C. Both 2 and 5

D. 1, 3 and 4

Answer: Option D

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Consider the following statements. Which of these statements is/are true?

A. Socialism is compatible with democracy and liberty, whereas Communism involves creating an 'equal society' through an authoritarian state

B. Totalitarianism is a form of government which involves complete submission of people to the government. The State recognizes no limits to its authority and strives to control every aspect of public and private life wherever feasible

C. India differed from core socialism as it went for a mixed economy rather than complete government control

D. All of the above statements are true