Fiscal Neutrality Definition: Fiscal neutrality is the principle that the government’s budget should neither increase nor decrease the overall level of economic activity. In other words, fiscal policy should not be used to promote economic growth or contraction. The idea of fiscal neutrality is based on the theory of fiscal neutrality, which states that changes … Read more
Fiscal policy: what it is, why it matters, and examples. What is the difference between fiscal and financial? Fiscal policy and financial policy are both economic policies implemented by governments. Fiscal policy refers to the government’s spending and taxation decisions, while financial policy refers to the government’s regulation of financial institutions. The main difference between … Read more
The Standard of Value is the benchmark against which the Department of Finance (DoF) assesses the value for money of government expenditure. It is used to inform government decision-making on the best use of public resources. The Standard of Value is also known as the cost-benefit analysis. Which of the following is the main objective … Read more
Hire Purchase Agreements: What They Are, How They Work, Pros and Cons What is hire purchase in business? The hire purchase system is a way for businesses to acquire goods by paying for them over time. Under this system, businesses make an initial down payment, followed by periodic payments, until the full purchase price is … Read more
Deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate). What are the types of deflation? There are four types of deflation: 1. Cost-Push Deflation: This occurs when the cost of production rises, leading to higher prices for goods … Read more
The Financial Stability Plan (FSP) is a set of policy measures designed to restore confidence in the financial system and support the flow of credit to the economy. The FSP was announced by the government on 12 October 2008 in response to the global financial crisis. The main components of the FSP are: 1. A … Read more
The Mint Definition refers to the specific characteristics that define a particular type of coin. This includes factors such as the metal content, weight, diameter, and thickness of the coin. The Mint Definition is important because it provides a clear and concise description of what a coin should look like. This allows for easy identification … Read more
