• (A) The Chairperson and four other members of Finance Commission are appointed by the President
• (B) It sets interest rates, which determine the cost of borrowing and the return on savings
• (C) It suggest the measures needed to augment the consolidated fund of a state and to supplement the resources of the panchayats and the Municipalities in the state
• (D) It lays down the principles that govern the grants-in-aid to the states by the Centre