CH 16

Question 1

List and describe two kinds of current federal taxes:

Answer 1

• Estate taxes: A levy imposed on the assets of one who dies

- Gift taxes: A levy imposed on the making of a gift by a living person

Question 2

_______ must authorize all federal borrowing, and money borrowed by the federal government must be raised by the sale of ____________________.

Answer 2

• Congress

- US bonding bills

Question 3

Explain the difference between the “annual deficit” and the “public deficit”.

Answer 3

Annual is the yearly income shortfall while public is gov’s total of indebtness

Question 4

List three of the largest spending priorities in the federal budget:

Answer 4

• Financial crisis
• Defense
• Debt interest

Question 5

Explain the difference between “discretionary” and “mandatory” federal spending.

Answer 5

Discretionary is the collected funding that is yet to be distributed. It does not have a specific cause to be given to. Mandatory is when it is required to be put into specific categories my law.

Question 6

The __________ initiates the federal budget process by submitting a budget, but only the __________ can officially authorize it by passing budget resolutions.

Answer 6

• President

- Congress

Question 7

List two limits on Congress’ power to tax:

Answer 7

• No export taxes

- Must agree with the Constitution

Question 8

What is seniorage:

Answer 8

-The profit on coin production

Question 9

What date is the beginning of the fiscal year of the US federal government?

Answer 9

October 1