Deck 13: Public Financial Management

Question 1

Which of the following are the timed steps in the budget cycle?

A) Preparation & approval
B) Reporting & Writing
C) Execution & audit
D) A and c

Answer 1

D

Question 2

A whole new debt instrument after 9/11 was the creation of Liberty Bonds to pay for the redevelopment projects in New York after the terrorist attacks.

Answer 2

True

Question 3

Which definition best describes the process of zero-based budgeting (ZBB)?

A) ZBB is an incremental budgeting process building on last year's shortfalls.
B) ZBB demands re-justification of the budget from ground zero each time a budget request was submitted.
C) ZBB is the best example of Lindblom's "muddling through."
D) None of the above.

Answer 3

B

Question 4

Deficit financing:

A) Is loans made by the federal government to subnational governments.
B) Is a debit in the national Treasury
C) Is when the government outlays exceed receipts and the government must borrow from the public.
D) None of the above.

Question 5

The American Recovery and Reinvestment Act is an example of Maynard Keynes' "pump priming" efforts by government to stimulate the economy.

Question 6

Legislation that provides budget authority for specific ongoing activities when the regular fiscal-year appropriation for such activities has not been enacted by the beginning of the fiscal year is known as a(n)

A) zero-based budget.
B) continuing resolution.
C) executive budget.
D) performance budget.

Question 7

Liberty bonds:

A) Are municipal bonds.
B) Were recovery bonds created after 9/11.
C) a and b
D) None of the above.

Question 8

The government task force in 1912 that recommended the creation of a national budgeting system was the

A) first Hoover Commission.
B) Taft Commission.
C) Grace Commission.
D) Ash Council.

Question 9

Public-private partnerships are joint efforts between local government and the federal government to pay for capital expenditures.

Question 10

Budgeting is clearly minor component of the decision-making process in government, processes like implementation take precedence.

Question 11

"Program Budgeting," first proposed in the 1950s by David Novick of the RAND Corporation is a form of budgeting that does all of the following EXCEPT

A) permits global understanding of expenditures, consolidated into programs, focused on effectiveness.
B) Consolidated spending into "programs"
C) Ranking programs by order of importance, and facing the possibility of the least important ones being discontinued.
D) A focus on effectiveness

Question 12

Ben Bernanke, is the Chairman of the Federal Reserve. This agency:

A) Makes decisions about the amount of money in circulation
B) Is the nation's central bank and makes decisions about the functioning of credit markets and the banking system.
C) Makes decisions about the level of interest rates
D) All of the above

Question 13

Management consultant Peter Phyrr first developed the theory of___________, for Texas Instruments.

A) program budgeting.
B) zero-based budgeting.
C) performance budgeting
D) line-item budgeting.

Question 14

You have just purchased a crock pot from Walmart, and you pay a sales tax directly and immediately to Walmart. The tax you paid on this purchase is an example of a direct tax.

Question 15

Municipal bonds are:

A) Debt instruments of state governments.
B) Are exempt from federal taxes
C) Certificates of loans, or promises from a a borrower to a lender to repay principal and interest accrued.
D) All of the above.

Question 16

The Flat Tax:

A) Charges a higher rate to the richest Americans.
B) Charges the same rate to each taxpayer &simplifies the tax filing process
C) Ends up charging more to the lower income taxpayers.
D) B and c

Question 17

A capital budget covers:

A) Long-term projects, such as bridges.
B) Short-term immediate government needs.
C) Is used by local governments to build interstate freeways
D) None of the above.

Question 18

The individual who showed that government spending, as a macroeconomic policy, is critical for stimulating the economy was:

A) V. O. Key, Jr.
B) Allen Schick.
C) William Willoughby.
D) John Maynard Keynes.

Question 19

The progressive tax is best seen within the income tax structure.

Question 20

Allocation is a term for ensuring that an appropriate level of funding flows into sectors of the economy where it is required.

Question 21

The traditional line item budget's weakness is that it does not show how well appropriations give "value for the money."

Question 22

The American Recovery and Reinvestment Act of 2009, is also known as the "Federal Stimulus."

Question 23

When Standard and Poor's downgraded the U.S. debt rating in 2011, it created fear that government would not be able to repay its debts.

Question 24

The costs of funding the Iraq War were seriously overestimated by the Bush administration's Office of Management and Budget.