Discussion
The most important characteristics of a federation is
Answer: B
The most important characteristic of a federation, in the keyed view, is the non-correspondence between the functions and the resources of the Centre and the State governments: States have wide functions but their own resources fall short, which gives a vertical fiscal imbalance and the need for transfers.
The supremacy of the Centre is a feature of a unitary or strongly centralised system, a perfect match between functions and resources would make transfers unnecessary, and 'none of the above' is not right since option B is the answer.
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