Which Type of Intergovernmental Tool Allows the National Government to Influence

question 4

Multiple Choice

Which type of intergovernmental tool allows the national government to influence the budget decisions of state and local governments by forcing them to spend their own money on a national priority?

• A) categorical grant
• B) block grant
• C) mandate
• D) preemption
• E) nullification

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the available short-term assets to cover short-term debts.

Book Value

The value of an asset as recorded on the balance sheet, calculated as the cost of an asset minus accumulated depreciation.

Acid-test Ratio

Acid-test ratio is a financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets (cash, marketable securities, and current receivables) without selling any inventory.

Debt-to-equity Ratio

A ratio illustrating the proportional use of shareholder equity and debt in the acquisition of a company's assets.