1-2 Practice Q&A

Question 1

When the budget dictates that a government agency may only spend its funds on specific types of goods and services controlling spending by

Answer 1

Object class

Question 2

The fiscal powers of a local government include all of the following abilities Except

Answer 2

levy a tax on interstate internet sales.

Question 3

which of the following limits are used in appropriation laws to control federal spending?

Answer 3

The amount of the appropriation, the time period during which the appropriation is unexpired, and the purpose for the appropriation.

Question 4

From the perspective of the federal government, legislative earmarking is a provision inserted into a discretionary spending by the

Answer 4

Congressional Appropriation Bill

Question 5

With respect to U.S. monetary policy, the

Answer 5

Federal Reserve System purchases and sells securities in the open market to supply bank reserves necessary to support the credit and money needed for economic growth.

Question 6

All local sovereign governmental entities have the ability to

Answer 6

establish budgets and spend public funds for authorized purpose

Question 7

How does the executive branch of the federal government control spending?

Answer 7

OMB apportions resources by time period or program, or both

Question 8

A legislative earmark is intended to

Answer 8

provide a specific benefit to the constituency of a particular elected official

Question 9

The primary objective of the budget process is to

Answer 9

prioritize government expenditures and allocate resources

Question 10

Which purpose is NOT supported by the budget process?
1. Establishing government priorities
2. Communicating public values and policies
3. Reporting results of government operations
4. Planning future government expenditure

Answer 10

Reporting results of government operations.

Question 11

What is meant by reprogramming?
1. The executive branch asks the legislative branch for approval to move funds from one appropriation line item to another.
2. The executive branch asks the judicial branch for approval to move funds from one program to another.
3. The legislative branch directs the judicial branch to move funds from one program activity to another.
4. The judicial branch directs the legislative branch to move funds from one object class to another.

Answer 11

The executive branch asks the legislative branch for approval to move funds from one appropriation line item to another.

Question 12

What is NOT a phase in the goverment financial management cycel?
1. auditing
2. reprogramming
3. reporting
4 operations

Answer 12

reprogramming

Question 13

Which objective is least likely to be achieved through the budget process?
1. Prioritize government expenditures
2. allocate financial resources to various programs
3. guide operations of organizational units
4. raise ceiling on debt limits.

Answer 13

raise ceiling on debt limits

Question 14

Which is most likely to provide preliminary budget targets to executive agencies?
1. U.S. Governmet Accountability Office
2. Legislative Services Agency
3. State Auditing Agency
4. U.S. Office of Management and Budget

Answer 14

U.S. Office of Management and Budget

Question 15

Which of the following is least likely to be an outcome of the budget process?
1. ensure operating results are presented according to GAAP
2. establish broad goals to guide decision-making within agencies
3. develop approaches to achieve goals with available resources
4make funding adjustments based on past performance

Answer 15

ensure operating results are presented according to GAAP

Question 16

Which of the following is NOT a technique used by the Federal Reserve System to achieve monetary policy?
1. buying and selling government bonds
2. establishing a new foreign currency exchange rate
3. altering the amount of reserves that other banks must keep on deposit with the Federal Reserve Bank
4. Changing the interest rate at which it loans funds to other institutions.

Answer 16

establishing a new foreign currency exchange rate