The Federal Budget

Once a year, the federal government is required to

• spend all of its revenue.

• create a budget.

• have a deficit.

• All of the above.

The federal budget process starts with

• Congress.

• The Department of Defense.

• The President’s Office.

• None of the above.

The federal government obtains most of its revenue from

• oil.

• taxes and fees.

• imports.

• All of the above.

The two largest expenses for the federal government are

• health programs (Medicaid and Medicare) and Social Security payments.

• education.

• transportation.

• None of the above.

The federal government has a history of creating poor budgets and has been running ________________ for years.

• large surpluses

• large deficits

• balanced budgets

• None of the above.

Approximately, how much was the national debt in 2022?

• $31 million

• $31 billion

• $31 trillion

• None of the above.

The federal government borrows money from

• individuals.

• foreign countries.

• Itself (trust funds).

• All of the above.

The key to a healthy budget is to balance revenues (money coming in) with expenses (bills). When these two match, you have what is called a

• surplus.

• deficit.

• balanced budget.

• None of the above.

A plan for spending and savings.

• Budget

• Receipt

• Invoice

• Contract

10. _______________ Is all of the money the federal government has borrowed over the years and has not paid back.

• National Debt

• Federal Reserve

• Budget Surplus

• Gross Domestic Product