Exploring Government Budgeting and Taxation

What is the start date of the U.S. government fiscal year?

• January 1st

• April 1st

• July 1st

• October 1st

What must the President submit to Congress by February 1st?

• A declaration of budget surplus

• A summary of tax revenues

• The budget proposal for the next fiscal year

• The annual financial report

What happens if the U.S. government does not approve the budget by October 1st?

• Increase in national debt

• Reduction in military spending

• Government shutdown occurs

• Budget surplus is declared

Which type of spending is determined by eligibility rules such as age or income levels?

• Corporate taxes

• Interest on debt

• Mandatory spending

• Discretionary spending

What is the largest source of revenue for the U.S. government?

• Corporate income tax

• Payroll taxes

• Excise taxes

• Individual income tax

Which type of tax is specifically collected for social security and healthcare benefits?

• Corporate income tax

• Payroll taxes

• Excise taxes

• Individual income tax

What term describes when government spending exceeds its revenue?

• Revenue excess

• Budget deficit

• Budget balance

• Budget surplus

What does a budget surplus indicate?

• Government spending equals revenue

• Government has no debt

• Government spending exceeds revenue

• Revenue exceeds government spending

Who is the largest foreign holder of U.S. debt?

• Japan

• United Kingdom

• China

• Brazil

What is the primary reason foreign investors hold U.S. debt?

• To control U.S. financial policies

• As a high-risk investment strategy

• Because it is considered a safe investment

• To influence U.S. elections