Financing the Government Test

What is the federal government's fiscal year?

• April 1st through March 31st

• July 1st through June 30th

• October 1st through September 30th

• January 1st through December 31st

What are uncontrollables in the federal budget?

• Taxes imposed on goods and services

• Required spending by law or previous commitments

• Benefits provided by Congress to individuals

• Discretionary spending on defense or nondefense

Which amendment authorized the U.S. income tax?

• Sixteenth Amendment

• Fourth Amendment

• First Amendment

• Twentieth Amendment

What is the national debt?

• The amount of money the government spends on defense

• The amount of money the government collects in taxes

• The amount of money the government saves in a surplus

• The amount of money the government borrows to fund budget deficits

What is the main tool of fiscal policy?

• Income and social insurance taxes

• The federal budget

• The Federal Reserve System

• State and local government revenue

Who appoints the members of the Board of Governors of the Federal Reserve?

• The Supreme Court

• The House of Representatives

• The Senate

• The President

What is the most important source of revenue for local governments?

• Property taxes

• Fines and fees

• Income taxes

• Sales taxes

What are property taxes based on?

• The market value of the property

• The assessed value of the property

• The income of the property owner

• The location of the property

What are some sources of state revenue?

• Grants and federal funding

• Income and social insurance taxes

• Excise, customs, and estate taxes

• Sales, income, and property taxes

What do conservatives tend to support?

• Increased government spending

• Tax and expenditure limits

• Higher taxes on the wealthy

• Expansion of entitlement programs