Which of the following is NOT a function of taxation?
Make few people rich in the country
Raise revenue for the government
Redistribution of income
Reduces production and consumption of harmful goods
Used as anti-inflationary device
Correct answer is D
No explanation has been provided for this answer.
Directing market specialist to fix prices
Interplay of either demand or supply
Producers are prices givers
Regulating the price system by the government
The use of market forces
Correct answer is A
No explanation has been provided for this answer.
Which of the following is a motive for holding money?
Celebration
Daily purchases
Election campaign
Payment of taxes
Correct answer is B
In his publication on The General Theory of Employment, Interest, & Money, Keynes outlined three reasons, or motives, for holding money or cash: Transaction Motive: to pay for goods or services. It is useful for conducting everyday transactions or purchases. Precautionary Motive: it's a relatively safe investment.
One of the following is NOT a reason for increase in public expenditure
Decrease arising from public debt and its servicing
Increase in capital expenditure to provide social services
Increase financial commitment for defence and security
Increase in recurrent expenditure with regard to wages and salary paid to public servant
Returns on viable public corporation
Correct answer is D
No explanation has been provided for this answer.
Which of the following is NOT a cause of inflation?
Excessive bank lending
Excessive deficit financing
Increase in domestics productivity
Increase in government expenditure
Correct answer is C
No explanation has been provided for this answer.