CGFM Exam Questions and Answers
Latest Update 2023
I1. A significant difference between special-purpose and general-purpose governments
is that general-purpose governments - Answer-Correct Answer: perform multiple
functions, while special-purpose governments are typically formed to perform one or two
specific functions.
I2. A commission that manages water and sewer services for several counties is an
example of a - Answer-Correct Answer: jointly-governed organization.
I3. A county commission meets to address the budget. In attendance are the five
members of the county commission the district attorney, the county executive officer
and the county sheriff. If the county budget officer presents the annual budget, who will
enact it? - Answer-Correct Answer: the county commission
I4. The primary role of the judicial branch is to hear cases that - Answer-Correct
Answer: seek interpretation and challenge legislation.
I5. Every state legislature has the authority to - Answer-Correct Answer: approve the
budget.
I6. Which of the following is a state government responsibility allowed by the U.S.
Constitution? - Answer-Correct Answer: license professionals, such as attorneys
I7. The executive branch of the U.S. government has the ability to - Answer-Correct
Answer: issue and enforce regulations required by statute.
I8. Executive orders are defined as - Answer-Correct Answer: official documents
specifying policy and procedures for government.
I9. The hierarchy of government authority is - Answer-Correct Answer: U.S.
Constitution, state constitution, state laws, state rules and regulations.
I10. The key principles in the relationship among the three branches of government
include all of the following EXCEPT - Answer-Correct Answer: popular sovereignty.
I11. The U.S. Constitution provides for separation of powers between which of the
following? - Answer-Correct Answer: the president, the Supreme Court and Congress
I12. Which of the following powers was granted exclusively to the federal government in
the U.S. Constitution? - Answer-Correct Answer: to regulate commerce with Native
American tribal governments
,I13. A conservation authority is established in a state to focus solely on swamp
conservation efforts; the authority has the power to levy taxes. This is an example of
which type of government? - Answer-Correct Answer: special-purpose district
I14. The legislative branch of the U.S. government has the ability to - Answer-Correct
Answer: limit government spending.
I15. If a citizen complains about trash in a county park the responsibility for addressing
the complaint resides with the - Answer-Correct Answer: county executive officer.
I16. Regulations promulgated by federal agencies must comply with - Answer-Correct
Answer: the U.S. Constitution, federal laws, and executive orders issued by the
president.
I17. A local government's authority is outlined in its constitution or - Answer-Correct
Answer: charter.
I18. A county-wide utility district is an example of a - Answer-Correct Answer: special-
purpose government.
I19. Several local school districts are forming a jointly-governed district to provide
education services to disabled students in a central location. The primary reason for
forming such an organization is to - Answer-Correct Answer: manage the program more
effectively and efficiently.
I20. A document is issued with the following title: "Amending Title 10 of the Philadelphia
Code entitled 'Regulation of Individual Conduct and Activity' by allowing the granting of
permanent licenses for guide dogs for the blind handicapped persons or government-
owned dogs used for law enforcement; all under certain terms and conditions." This is
an example of - Answer-Correct Answer: an ordinance.
I21. With regard to lands held by Native American tribal governments the U.S.
Constitution and subsequent Supreme Court decisions affirm that - Answer-Correct
Answer: tribes have limited sovereignty over tribal lands and are subject to certain U.S.
government jurisdictions.
I22. A city council is representative of which branch of government? - Answer-Correct
Answer: legislative
I23. What type of laws may the U.S. Congress pass with respect to tribal governments?
- Answer-Correct Answer: Congress may pass laws pertaining to commerce with tribal
governments.
I24. Which of the following examples demonstrates how the separation of powers and
checks and balances among the three branches of the government affect spending by
governmental agencies? - Answer-Correct Answer: the use of a line-item veto by a
, president, governor or mayor, but only if that power is available and deemed
constitutional and legal
I25. State laws can limit local authority EXCEPT in cases where state law - Answer-
Correct Answer: violates the U.S. Constitution.
I26. Which of the following statements describes the relationship that the U.S.
Constitution provides among the branches of the government? - Answer-Correct
Answer: Congress establishes laws, the executive branch establishes and implements
regulations, and the judiciary determines if the laws or regulations violate the
Constitution.
II 1. Congress passes a national budget every year while state and local governments
enact either of what type of budgets? - Answer-Correct Answer: annual or biennial
II 2. How does the executive branch of the federal government control spending? -
Answer-Correct Answer: OMB apportions resources by time period or program, or both.
II 3. What is monetary policy and who may exercise it? - Answer-Correct Answer: It is
the power to establish the money supply exercised by the federal government.
II 4. With respect to U.S. monetary policy, the - Answer-Correct Answer: Federal
Reserve System purchases and sells securities in the open market to supply bank
reserves necessary to support the credit and money needed for economic growth.
II 5. As resources decrease and demands on government goods and services increase,
what role of the budget becomes more critical? - Answer-Correct Answer: priority-
setting role
II 6. The mission of the budget process, as identified by the National Advisory Council
on State and Local Budgeting, is to - Answer-Correct Answer: help decision-makers
make informed choices about the provision of services and capital assets.
II 7. The legal authority to incur expenses and expend money is an - Answer-Correct
Answer: appropriation.
II 8. When the budget dictates that a government agency may only spend its funds on
specific types of goods or services, it is controlling spending by - Answer-Correct
Answer: object class.
II 9. The sovereignty of a U.S. state is constrained by - Answer-Correct Answer: the
U.S. Constitution.
II 10. The primary objective of the budget process is to - Answer-Correct Answer:
prioritize government expenditures and allocate resources.
Latest Update 2023
I1. A significant difference between special-purpose and general-purpose governments
is that general-purpose governments - Answer-Correct Answer: perform multiple
functions, while special-purpose governments are typically formed to perform one or two
specific functions.
I2. A commission that manages water and sewer services for several counties is an
example of a - Answer-Correct Answer: jointly-governed organization.
I3. A county commission meets to address the budget. In attendance are the five
members of the county commission the district attorney, the county executive officer
and the county sheriff. If the county budget officer presents the annual budget, who will
enact it? - Answer-Correct Answer: the county commission
I4. The primary role of the judicial branch is to hear cases that - Answer-Correct
Answer: seek interpretation and challenge legislation.
I5. Every state legislature has the authority to - Answer-Correct Answer: approve the
budget.
I6. Which of the following is a state government responsibility allowed by the U.S.
Constitution? - Answer-Correct Answer: license professionals, such as attorneys
I7. The executive branch of the U.S. government has the ability to - Answer-Correct
Answer: issue and enforce regulations required by statute.
I8. Executive orders are defined as - Answer-Correct Answer: official documents
specifying policy and procedures for government.
I9. The hierarchy of government authority is - Answer-Correct Answer: U.S.
Constitution, state constitution, state laws, state rules and regulations.
I10. The key principles in the relationship among the three branches of government
include all of the following EXCEPT - Answer-Correct Answer: popular sovereignty.
I11. The U.S. Constitution provides for separation of powers between which of the
following? - Answer-Correct Answer: the president, the Supreme Court and Congress
I12. Which of the following powers was granted exclusively to the federal government in
the U.S. Constitution? - Answer-Correct Answer: to regulate commerce with Native
American tribal governments
,I13. A conservation authority is established in a state to focus solely on swamp
conservation efforts; the authority has the power to levy taxes. This is an example of
which type of government? - Answer-Correct Answer: special-purpose district
I14. The legislative branch of the U.S. government has the ability to - Answer-Correct
Answer: limit government spending.
I15. If a citizen complains about trash in a county park the responsibility for addressing
the complaint resides with the - Answer-Correct Answer: county executive officer.
I16. Regulations promulgated by federal agencies must comply with - Answer-Correct
Answer: the U.S. Constitution, federal laws, and executive orders issued by the
president.
I17. A local government's authority is outlined in its constitution or - Answer-Correct
Answer: charter.
I18. A county-wide utility district is an example of a - Answer-Correct Answer: special-
purpose government.
I19. Several local school districts are forming a jointly-governed district to provide
education services to disabled students in a central location. The primary reason for
forming such an organization is to - Answer-Correct Answer: manage the program more
effectively and efficiently.
I20. A document is issued with the following title: "Amending Title 10 of the Philadelphia
Code entitled 'Regulation of Individual Conduct and Activity' by allowing the granting of
permanent licenses for guide dogs for the blind handicapped persons or government-
owned dogs used for law enforcement; all under certain terms and conditions." This is
an example of - Answer-Correct Answer: an ordinance.
I21. With regard to lands held by Native American tribal governments the U.S.
Constitution and subsequent Supreme Court decisions affirm that - Answer-Correct
Answer: tribes have limited sovereignty over tribal lands and are subject to certain U.S.
government jurisdictions.
I22. A city council is representative of which branch of government? - Answer-Correct
Answer: legislative
I23. What type of laws may the U.S. Congress pass with respect to tribal governments?
- Answer-Correct Answer: Congress may pass laws pertaining to commerce with tribal
governments.
I24. Which of the following examples demonstrates how the separation of powers and
checks and balances among the three branches of the government affect spending by
governmental agencies? - Answer-Correct Answer: the use of a line-item veto by a
, president, governor or mayor, but only if that power is available and deemed
constitutional and legal
I25. State laws can limit local authority EXCEPT in cases where state law - Answer-
Correct Answer: violates the U.S. Constitution.
I26. Which of the following statements describes the relationship that the U.S.
Constitution provides among the branches of the government? - Answer-Correct
Answer: Congress establishes laws, the executive branch establishes and implements
regulations, and the judiciary determines if the laws or regulations violate the
Constitution.
II 1. Congress passes a national budget every year while state and local governments
enact either of what type of budgets? - Answer-Correct Answer: annual or biennial
II 2. How does the executive branch of the federal government control spending? -
Answer-Correct Answer: OMB apportions resources by time period or program, or both.
II 3. What is monetary policy and who may exercise it? - Answer-Correct Answer: It is
the power to establish the money supply exercised by the federal government.
II 4. With respect to U.S. monetary policy, the - Answer-Correct Answer: Federal
Reserve System purchases and sells securities in the open market to supply bank
reserves necessary to support the credit and money needed for economic growth.
II 5. As resources decrease and demands on government goods and services increase,
what role of the budget becomes more critical? - Answer-Correct Answer: priority-
setting role
II 6. The mission of the budget process, as identified by the National Advisory Council
on State and Local Budgeting, is to - Answer-Correct Answer: help decision-makers
make informed choices about the provision of services and capital assets.
II 7. The legal authority to incur expenses and expend money is an - Answer-Correct
Answer: appropriation.
II 8. When the budget dictates that a government agency may only spend its funds on
specific types of goods or services, it is controlling spending by - Answer-Correct
Answer: object class.
II 9. The sovereignty of a U.S. state is constrained by - Answer-Correct Answer: the
U.S. Constitution.
II 10. The primary objective of the budget process is to - Answer-Correct Answer:
prioritize government expenditures and allocate resources.
