Deck 3: Budget Methods and Practices

Question 1

The consequences of legislation enacted to cancel budget authority previously provided by Congress before the time when the authority would otherwise lapse i.e., cease to be available for obligation) is called:

A) impoundment.
B) deferral.
C) rescission.
D) sequestration
e. None of the above.

Answer 1

rescission

Question 2

Which agency is responsible for external audit of federal departments and agencies?

A) Congressional Budget Office CBO)
B) Government Accountability Office GAO)
C) U.S. Treasury Office of Fiscal Accounts TOFA)
D) Shared responsibility of all three

Answer 2

Government Accountability Office GAO

Question 3

A continuing resolution enables an agency to:

A) continue operations in a fiscal year, despite the fact that it overspent its appropriation for that fiscal year.
B) continue operations in a fiscal year, despite the fact that it overspent its appropriation for the prior fiscal year.
C) continue operations in a fiscal year, despite the fact that it has received no appropriation for that year.
D) negotiate its appropriations between the House and the Senate.

Answer 3

continue operations in a fiscal year, despite the fact that it has re ceived no appropriation for that year

Question 4

Which of the following best describes the Congressional Budget resolution?

A) The budget submitted by the President to Congress
B) The formal appropriation of funds to agencies
C) The reconciliation of committee appropriations
D) Budget priorities established by Congress

Question 5

In what decade was the first Congressional Budget?

A) 1790s
B) 1970s
C) 1860s
D) 1920s

Question 6

Which statement about federal mandatory spending is accurate?

A) Because of its importance for the life of the nation, spending for the military is regarded as mandatory.
B) Because appropriation bills must pass for agencies to continue operations, all spending that must go through the full appropriation cycle is considered mandatory.
C) Spending for social security benefits is officially mandatory.
D) Any public program with strong political support is seen as mandatory.

Question 7

Which of the following would reduce the level of the net debt of the federal government?

A) Cut expenditure and raise revenue to reduce the deficit from $400 billion to $100 billion.
B) Balance the federal budget.
C) Run an annual surplus.
D) All of the above.

Question 8

The Budget Control Act of 2011 did which of the following:

A) Provided for a balanced federal budget by fiscal 2013.
B) Established a PAYGO system for all federal tax and expenditure proposals.
C) Increased the federal debt ceiling.
D) Required that federal entitlement programs be reduced by 5 percent for the next three years.

Question 9

In what quarter of what fiscal year execution phase) is the Federal government today?

A) First quarter 201_
B) Second quarter 201_
C) Third quarter 201 _
D) Fourth quarter 201_

Question 10

Which of the following is not discretionary spending under the rules of BEA90?

A) Spending for the Department of Defense
B) Spending for the Social Security benefits
C) Spending for the Environmental Protection Agency
D) Spending for homeland defense

Question 11

Suppose that when he took office in January 2009, President Obama wanted to
reduce the level of spending by the Drug Enforcement Administration during
fiscal 2009. What budget procedure would allow him to do that?

A) He had no legal way of doing this.
B) Executive transfers out of the Drug Enforcement Administration to the Department of Treasury Impoundment Fund
C) A rescission approved by Congress
D) None of the above

Question 12

Which of the following categories of federal government spending is the largest?

A) Human resources
B) Physical resources
C) International foreign) aid
D) National defense

Question 13

The PAYGO budget requirement means:

A) that only programs generating revenues may be proposed for addition to the executive budget.
B) that legislation that would increase entitlement spending must be accompanied with an increase in revenue or reduction in spending sufficient to cover the new entitlement spending.
C) that debt refinancing must be approved by Congress.
D) that no tax reductions are permitteD)

Question 14

The Congressional Budget and Impoundment Act of 1974 had which of the following consequences?

A) Prohibited the presidential impoundment of federal funds.
B) Strengthened the role of the President.
C) Shortened the time between presentation of the President's budget and the start of the fiscal year.
D) None of the above.

Question 15

The most recent presidential budget that was presented to Congress with a planned surplus was presented by what President?

A) George W. Bush
B) Reagan
C) Nixon
D) Clinton

Question 16

Impoundment occurs during which stage of the budget process?

A) preparation
B) adoption
C) execution
D) audit and evaluation

Question 17

Which of the following is a means-tested entitlement program?

A) Medicare
B) Medicaid
C) Social Security
D) Temporary Assistance for Needy Families TANF)

Question 18

Which of the following is correct about the Government Accountability Office?

A) It prepares budgets for executive agencies under the direction of the President.
B) It reviews agency budget requests for the President.
C) It prepares audits and evaluations for the President.
D) It does not report to the President.

Question 19

The growth of Federal government spending in the last 30 years is primarily due to:

A) defense spending.
B) interest on the debt.
C) transfer payments.
D) education.

Question 20

Which of the following did the Balanced Budget and Emergency Deficit Control Act of 1985 do?

A) Require that actual federal outlays be no greater than receipts by 1991.
B) Require a decline in the federal debt, at least through 1991.
C) Establish declining deficit targets aiming toward a balanced budget in 1991.
D) Create an item veto.