Question

The principle of 'fiscal federalism' refers to:

• A. The allocation of funds for international development aid.
• B. The management of a country's national debt by the central bank.
• C. The regulation of private sector financial markets by the government.
• D. The division of financial powers and responsibilities between different levels of government

Answer 1

Answer:

D. The division of financial powers and responsibilities between different levels of government

• Fiscal federalism is the study of how expenditure and revenue are divided among the different tiers of government, such as the central, state, and local governments.