Question : What is the purpose of the Congressional Budget Office?
Option 1: To develop and implement the federal budget
Option 2: To provide economic analysis to Congress
Option 3: To manage the federal debt
Option 4: To regulate the banking industry
Correct Answer: To provide economic analysis to Congress
Solution : The correct answer is (b) To provide economic analysis to Congress
The purpose of the Congressional Budget Office (CBO) is to provide economic analysis to Congress. The CBO is a non-partisan agency that assists Congress in making informed decisions about fiscal matters. It provides objective and impartial analysis of budgetary and economic issues, such as the impact of proposed legislation on the federal budget, the economy, and other aspects of public policy. The CBO's role is to support Congress in understanding the potential consequences of policy choices and to provide reliable information for the legislative process. It does not develop and implement the federal budget, manage the federal debt, or regulate the banking industry
Question : The government agency responsible for preparing the federal budget in the United States is the:
Option 1: Federal Reserve
Option 2: Treasury Department
Option 3: Office of Management and Budget
Option 4: Internal Revenue Service
Question : In the United States, the budget is prepared by:
Option 1: The President
Option 2: The Congress
Option 3: The Treasury Department
Option 4: The Federal Reserve
Question : What is the purpose of a budget surplus?
Option 1: To pay down the national debt
Option 2: To increase government spending
Option 3: To decrease taxes
Option 4: To encourage economic growth
Question : What is the purpose of a credit rating agency?
Option 1: To determine the dividend payout ratio of a company
Option 2: To evaluate the risk of default on debt securities
Option 3: To manage the issue of preference shares
Option 4: To regulate the secondary market trading
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