a. Fiscal policy is the use of government spending, taxation, and borrowing to influence economic activity, aiming for growth, stability, and equity. In Ghana, it’s implemented via budgets, impacting banks through treasury bill issuances.

b. Any two main aims of fiscal policy are achieving full employment (reducing unemployment) and controlling inflation (stabilizing prices). Post-2022 DDEP, Ghana’s policy focused on debt sustainability, affecting bank holdings per BoG directives.

c. Four main methods of financing economic projects are:

• Taxation: Raising revenue through income or VAT, as in Ghana’s GRA collections.
• Borrowing: From domestic (treasury bills) or international sources (e.g., IMF loans).
• Printing money: Though inflationary, used cautiously.
• Public-private partnerships: Involving private sector, like in Ghana’s infrastructure projects financed via banks.

d. The government actively engages in various economic activities; any three: providing public goods (e.g., roads), regulating markets (via BoG for finance), and redistributing income (through social programs like LEAP in Ghana).