ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Income-Money you have to pay.
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Expenditure-Money you spend.
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Budget-A plan for spending.
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Saving-Setting aside money for future use.
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Detailed explanation-1: -The two main tools of fiscal policy are taxes and spending. Taxes influence the economy by determining how much money the government has to spend in certain areas and how much money individuals should spend.
Detailed explanation-2: -The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Indexes are available for the U.S. and various geographic areas.
Detailed explanation-3: -Under monetary measures, it takes various steps to control the supply of money in the economy which invariably leads to a decrease in demand and thus, control over inflation. Under fiscal measures, the government tries to decrease its expenditure and increase its revenue.
Detailed explanation-4: -Every month, 1/12 of this net tax liability as computed above is required to be deducted. Sections 192 (1A) & 192 (1B) of the Income Tax Act, enable the employer at his option, to make payment of the entire tax or a part of the tax due on non monetary perquisites given to the employee.