What is true regarding sources of revenue in a federal system?

Q. What is true regarding sources of revenue in a federal system?

A.            States have no financial powers or independent sources of revenue.

B.            States are dependent on revenue or funds on the central government.

C.            Sources of revenue for each level of government are clearly specified to ensure its financial autonomy.

D.            States have no financial autonomy.

Answer: Sources of revenue for each level of government are clearly specified to ensure its financial autonomy.