Government 20 Multiple Choice

this office evaluates the federal budget

CBO

the cenral banking system is supervised by

appointed board of governors

the IRS checks some tax returns more carefully than others during

audits

this concept means that the federal budget changes only a little from one year to the next

incrementalism

the cheif way the federal government raises revenue from

individual income taxes

the control the government uses to influence the direction of the economy is exercised through

monetary policy

because it is based on a taxpayer's ability to pay, the federal income tax is called a

progressive tax

this task is a responsibiltiy of the federal reserve system

raise or lower reserve requirement

expenditures required by law or those from previous budgetary commitments are

uncontrollables

this office is responsible for preparing the national budget

OMB

the federal reserve system uses three main tools to control the financial actitivies of the nation's banks, raising or lowering the discount rate, raising or lowering the reserve requirement, or buying government bonds or selling federal securities. if the governemtn chose to raise the reserve requirements on banks, what would likely occur

banks would lend less money

the power to raise revenue and pass appropriations is the power of

congress

which of the following types of taxes account for less than 2 cents of every tax dollar collected by the federal government

custom duties

eginning in the 1930's the united states had an unbalanced budget, or

defici

these expenditures are benefits Congress has provided to individuals

entitlements

taxes on manufactoring, transportation, and sale or consumption of goods and on the performance of

excise taxes

this organization is the central banking system of the united states

fed

what is it called when te price of foreign goods are raised to make them less competitive with amerian products on the domestic market

federal tariff

a 12-month accounting period is called a

fiscal year

this law was created to force presidents and congress to work together to reduce federal budget deficits

grahm-redmen hollings act

the yearly sum of goods and products produced in a country is called the

gross national product

which of the following taxes go directly to the treasury department special trust accounts

social insurence taxes

an example of an entitlement program is

social security

people use these legal strategies to avoid paying higher taxes

tax loopholes

an individual's total income, minus certain deductions and personal exemptions, is called the

taxable income