The Federal Budget

Question 1

Fiscal Policy

Answer 1

Easing and lowering taxes and government spending programs. Fiscal policy is controlled by the executive and legislative branches.

Question 2

Entitlement Program

Answer 2

A government-sponsored program that provides mandated benefits to those who meet eligibility requirements. Social Security and Medicare are the government’s largest entitlement programs.

Question 3

Office of Management and Budget (OMB)

Answer 3

The OMB is responsible for preparing the budget that the president submits to Congress.

Question 4

Monetary Policy

Answer 4

Monetary policy involves regulating the money supply, controlling inflation, and adjusting interest rates. Monetary policy is controlled by the Federal Reserve Board.