CGFM Federal Budget Process and Execution 3

Question 1

What is the 'current services baseline' in federal budgeting?

Accepted Answer

A projection of future spending needed to continue current programs at current service levels

Answer

Last year's actual spending amounts

Answer

The minimum budget required by law

Answer

The CBO's recommended spending levels

Question 2

Which type of appropriation does NOT expire at the end of the fiscal year?

Accepted Answer

No-year appropriation

Answer

Annual appropriation

Answer

Supplemental appropriation

Answer

Continuing resolution

Question 3

What is a 'rescission' in federal budgeting?

Accepted Answer

A legislative cancellation of previously enacted budget authority

Answer

An automatic spending cut triggered by a sequester

Answer

A transfer of funds to a different program

Answer

An increase in the debt ceiling

Question 4

What is the 'pay-as-you-go' (PAYGO) rule in federal budgeting?

Accepted Answer

Requiring that new mandatory spending or tax cuts be offset by spending cuts or tax increases

Answer

Requiring agencies to pay vendors immediately upon delivery

Answer

Requiring quarterly budget reporting to Congress

Answer

Requiring balanced budgets each fiscal year

Question 5

In the federal budget, what are 'earmarks'?

Accepted Answer

Congressional directives in appropriations bills specifying how funds must be spent on particular projects or locations

Answer

Funds set aside for emergency use

Answer

Mandatory spending programs

Answer

Funds transferred between agencies

Question 6

What is the role of the Government Accountability Office (GAO) in the federal budget process?

Accepted Answer

Providing Congress with independent auditing, investigative, and oversight services

Answer

Preparing the President's annual budget

Answer

Apportioning funds to federal agencies

Answer

Setting tax policy for the federal government