CGFM EXAM 1 GOVERNMENT
ENVIRONMENT LATEST EXAM 2024 WITH
200 PREP QUESTIONS AND CORRECT
ANSWERS (100% CORRECT VERIFIED
ANSWERS) CGFM EXAM 1 2024/2025 (NEW!)
II 1. Congress passes a national budget every year while state and local
governments enact either of what type of budgets? - ANSWER-Correct Answer:
annual or biennial
II 2. How does the executive branch of the federal government control spending? -
ANSWER-Correct Answer: OMB apportions resources by time period or program,
or both.
II 3. What is monetary policy and who may exercise it? - ANSWER-Correct
Answer: It is the power to establish the money supply exercised by the federal
government.
II 4. With respect to U.S. monetary policy, the - ANSWER-Correct Answer:
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.
II 5. As resources decrease and demands on government goods and services
increase, what role of the budget becomes more critical? - ANSWER-Correct
Answer: priority-setting role
pg. 1
,II 6. The mission of the budget process, as identified by the National Advisory
Council on State and Local Budgeting, is to - ANSWER-Correct Answer: help
decision-makers make informed choices about the provision of services and capital
assets.
II 7. The legal authority to incur expenses and expend money is an - ANSWER-
Correct Answer: appropriation.
II 8. When the budget dictates that a government agency may only spend its funds
on specific types of goods or services, it is controlling spending by - ANSWER-
Correct Answer: object class.
II 9. The sovereignty of a U.S. state is constrained by - ANSWER-Correct Answer:
the U.S. Constitution.
II 10. The primary objective of the budget process is to - ANSWER-Correct
Answer: prioritize government expenditures and allocate resources.
II 11. A sovereign entity's ability to tax, spend and borrow is limited by -
ANSWER-Correct Answer: charters, constitutions, laws and ordinances.
II 12. A government budget is intended to - ANSWER-Correct Answer: serve as a
financial plan and reflect the priorities of elected officials.
II 13. Collections that are legally restricted to expenditures for specific purposes
would be recorded in - ANSWER-Correct Answer: special revenue funds.
II 14. If an appropriation law for the budget year is not enacted before the start of
the fiscal year, Congress may pass - ANSWER-Correct Answer: a continuing
resolution.
pg. 2
,II 15. A legislative earmark is intended to - ANSWER-Correct Answer: provide a
specific benefit to the constituency of a particular elected official.
II 16. All local sovereign governmental entities have the ability to - ANSWER-
Correct Answer: establish budgets and spend public funds for authorized purposes.
II 17. A budget at any governmental level serves as all of the following EXCEPT -
ANSWER-Correct Answer: a vision document.
II 18. After the president has signed an appropriation into law, the OMB may
further control a federal agency's budget authority using which of the following? -
ANSWER-Correct Answer: apportionment
II 19. What legal authority establishes the U.S. government's right to coin money,
while prohibiting states from taking the same action? - ANSWER-Correct Answer:
U.S. Constitution
II 20. Which of the following limits are used in appropriations laws to control
federal spending? - ANSWER-Correct Answer: the amount of the appropriation,
the time period during which the appropriation is unexpired, and the purpose for
the appropriation
II 21. The table to the left provides details on the Transportation Security
Administration's annual operating appropriation. The budget authority has been
apportioned on a quarterly basis with object class breakouts. Figures below are in
millions of dollars. The Transportation Security Administration's financial
managers estimate Q2 labor costs will be approximately $8.5 million. Based on
this information the Transportation Security Administration staff should take
which of following actions? - ANSWER-Correct Answer: request an adjustment to
the apportionment distribution
pg. 3
, II 22. The September 11th Victim Compensation Fund and similar funds
established to settle class-action lawsuits are examples of - ANSWER-Correct
Answer: special funds.
II 23. The concept of sovereign immunity - ANSWER-Correct Answer: means that
the U. S. government cannot be sued without its permission.
II 24. Apportionments and allotments are typically distributed by - ANSWER-
Correct Answer: quarter.
II 25. An apportionment may be subdivided by a federal agency into - ANSWER-
Correct Answer: allotments.
II 26. Popular Sovereignty is - ANSWER-Correct Answer: the supreme power the
people possess over government and public policies.
II 27. From the perspective of the federal government, legislative earmarking is a
provision inserted into a discretionary spending by the - ANSWER-Correct
Answer: Congressional Appropriations Bill.
II 28. The fiscal powers of a local government include all of the following abilities
EXCEPT - ANSWER-Correct Answer: levy a tax on interstate internet sales.
II 29. Time constraints for an agency's spending are imposed by which budgetary
control? - ANSWER-Correct Answer: appropriation
pg. 4
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