Government Chapter 20
What is the bankers' bank?
The Feds
Which act is aimed at cooperation on budget?
The Gramm-Rudman-Hollings Act
What is the function of the CBO?
The function of the CBO is to evaluate the overall budget.
What is the function of the OMB?
The function of the OMB is to prepare the budget.
What is the Gross National Product?
The total value of goods and services produced during a year.
What are entitlements?
They are benefits that congress has provided by law to individuals, they have legal rights.
What are uncontrollable's?
They are expenditures required by law or resulting from previous budgetary commitments.
What are securities?
They are financial instruments that include bonds,notes, and treasury bills.
What are withholdings?
They are when employers withhold a certain amount of money from the workers wages.
What must Member banks have with the Fed?
They must have Reserve Requirements.
What is the discount rate?
This is the rate at which the Fed charges member banks for loans.
What is a deficit?
This is the total expenditures exceed the revenue that it generates.
What are open market operations?
This is when the Fed puts money into the economy by buying bonds and other securities in the open market.
Which country has a money economy?
United States of America.
What is a fiscal year?
It is a 12 month accounting period.
What is reconciliation?
It is the legislative process in which the United States Senate intended to allow consideration of a budget with in a 24 hour period debate.
What is taxable income?
It is the total income of an individual minus a certain deductions and personal exemptions.
What is fiscal policy?
It is the using of government spending and taxation to influence the economy.
What is monetary policy?
It is what controls the supply of money and credit to influence the economy.
What is national debt?
It is when a country is spending more money than they have in their budget.
What is incrementalism?
It's the total budget changes that only go up a little increment from one year to the next.
The function of closely checking tax returns is called an?
Audit
Which tax system is based on the ability to pay?
Progressive tax
What type of taxes are Social Insurance taxes?
Regressive Taxes
What is the Biggest Entitlement Program?
Social Security
What is a dependent?
Someone who depends primarily on another person for such things as food, clothing, and shelter
What is the chief way that the government raises money?
Taxes