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CGFM EXAM 1 GOVERNMENT ENVIRONMENT | COMPLETE STUDY GUIDE, PRACTICE QUESTIONS AND ANSWERS

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Prepare for the CGFM Exam 1 Government Environment assessment with this comprehensive study resource designed to help candidates review essential government environment concepts and strengthen exam readiness. This material includes practice questions and correct answers covering key topics relevant to the CGFM Government Environment examination, helping reinforce understanding, improve knowledge retention, and identify areas for further review. Ideal for candidates seeking focused and organized CGFM preparation, this guide provides an effective way to review important concepts and build confidence before the assessment.

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CGFM EXAM 1 GOVERNMENT
ENVIRONMENT | COMPLETE STUDY
GUIDE, PRACTICE QUESTIONS AND
ANSWERS
| GRADED A+ | GUARANTEED SUCCESS


Updated 2026 Questions and Answers

100% Verified Exam Prep

,3 Branches 1) Legislative
2) Executive
3) Judicial


Separation of Powers Feature of the Constitution that requires each of the three branches of government—
legislative, executive, and judicial—to be relatively independent of the others so that one
cannot control the others. Power is shared among the three branches of government.


Checks and Balances Constitutionally-mandated system that allows each branch of government to amend or
veto acts of another branch so as to prevent any one branch from exerting too much
power.


Judicial Review Power given to the judicial branch in order to sustain checks and balances. Courts can
overturn laws passed by the legislature & signed by the president/governor if courts
deem them unconstitutional. Enables judges to question the legality and reasonableness
of a gov't manager's administrative actions. (Test question)


Federalism U.S. system of gov't. Power is distributed among different levels of gov't and no one level
of gov't has complete authority over all areas of public policy. No centeralized system of
gov't in U.S.


Popular Sovereignty Basic concept of the Constitution. The idea that ultimate authority belongs to the voting
people and even a sovereign gov't is accountable to citizens.


Legal Constraints Derived from constitutions, statutes, and ordinances. They can include limits on the type
of tax, rate of tax, and tax collection purposes.


Purpose Ways in which constitutions and charters specify whether the government can incur debt
Term and limit government borrowing. (PTAP)
Amount
Process


Reserved Clause Stems from the 10th Amendment to the U.S. Constitution. Powers not delegated to the
Nat'l gov't, nor prohibited to the states, are reserved to the states and the people. Nat'l
gov't can influence lower levels, but can't dictate the manner in which state & local gov't
will operate.

, Areas of Overlap in Governmental Responsibilities Nat'l and state gov'ts exercise authority in civil defense and the Nat'l Guard. For example,
during peacetime, Nat'l Guard units fall under the direction of state governors and meet
the needs of the state. During nat'l emergencies, these units are under command of the
President, Commander in Chief. State and local gov'ts have some responsibility for traffic
safety. All 3 levels impact public education.


Grants Money that is distributed to lower-level governments with the purpose of funding special
projects.


Laboratories of Democracy Nickname given to state and local governments because they experiment with policies
and procedures that are later adopted at the nat'l level.


Performance Reporting Example of upward influence (laboratory of democracy). U.S. gov't requirement created
in the 90s for federal agencies . Process of collecting and distributing performance
information; includes status reporting, progress measurement, and forecasting.


Legislative Passes laws. House of Representatives and Senate form legislative branch of Nat'l gov't.
Includes Congressional Budget Office, the Library of Congress, Gov't Accountability
Office, and Architect of the Capitol.


Executive Administers laws. Executes gov't programs. Includes the U.S. Departments of Education,
Interior, and Defense.


Judicial Interprets laws and exercises judicial review over actions of the other branches.


Municipal Governments The lowest level of government and exercises authority over a municipality (i.e. city, town,
village). Usually, the scope of its powers are determined by its delegated authority from
the level of government that creates it and the laws it passes are called ordinances.


U.S. Constitution A set of principles (guidelines) that describe the duties and powers of the U.S.
government. Written in 1787 and ratified in 1791. Has been amended 27 times. The first 10
amendments form the Bill of Rights. Comprised of seven articles.


Article I Defines powers of the legislative branch. Power to enact law, collect taxes, coin money,
raise armies and declare war.

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