Excise duty
Ad valorem tax
Specific tax
Capital gain tax
Correct answer is D
A direct tax is a tax, such as income tax, which is levied on the income or profits of the person who pays it, rather than on goods or services. Some of the different direct taxes are income tax, corporate tax, wealth tax, and capital gains tax.
The function that distinguishes commercial banks from the central bank is that the former
Is a lender of last resort
Accepts deposits from the public
Services the public debt
regulates foreign exchange
Correct answer is B
Commercial banks serve individuals and businesses, while central banks serve the country's banking system. They provide money transfers back and forth between banks and governmental institutions both domestically and in cases of transactions with foreign entities.
the major difference here is that, the central bank is the government bank and serves the country in a whole while commercial banks accepts deposit from the public
One of the major functions of money is?
Medium of exchange
Stable in value
Store of value
Acceptance by the central bank
Correct answer is A
Money's most important function is as a medium of exchange to facilitate transactions. Without money, all transactions would have to be conducted by barter, which involves direct exchange of one good or service for another.
A measure of the value of money in an economy is the
Size of workers
General price
Total level of savings
Total amount of loans granted by the banks
Correct answer is B
The value of any good is determined by its supply and demand and the supply and demand for other goods in the economy. A price for any good is the amount of money it takes to get that good. The value is inherent in its purchasing power which is price.
Which of the following is most likely to be of benefit to a debtor?
Inflation
Deflation
Revaluation
Monetization
Correct answer is A
Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.
If wages increase with inflation, and if the borrower already owed money before the inflation occurred, the inflation benefits the borrower. This is because the borrower still owes the same amount of money, but now he or she has more money in his or her paycheck to pay off the debt.