Question
Public finance and Private finance.

Answer

Public FinancePrivate Finance
(a) Public finance refers to income and expenditure of public authorities.(a) Private finance refers to income and expenditure of individual and private sector organisations.
(b) The objective of public finance is to offer maximum social advantage.(b) The objective of private finance is to fulfil private interest.
(c) Credit availability is more to increase public finance.(c) Credit availability is limited to increase private finance.
(d) The supply of public finance is more elastic.(d) The supply of private finance is less elastic.
(e) In case of public finance, government first determines the volume and different ways of it’s expenditure.(e) In case of private finance, an individual considers income first and then determines the volume of expenditure.

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