Correct Answer:
B. Government exchequer
Informer rewards are a form of public expenditure aimed at supporting law enforcement and justice. Therefore, they are typically paid from the general public funds. The correct source is the Government exchequer, which is the treasury or fund of the government. This ensures that the rewards are properly accounted for and disbursed from a legitimate and consistent source of public money. Auction proceeds, court fines, or police funds are specific revenue streams or operational budgets; while they contribute to the exchequer, they are not the direct, designated source for informer rewards, which are a distinct budgetary allocation.