Assume That a Blended Component Unit of the Town Has

question 30

Multiple Choice

Assume that a blended component unit of the town has its own General Fund, Special Revenue Fund, and Capital Projects Fund. All funds meet the major fund criteria. The primary government has a General Fund, three Special Revenue Funds, one Permanent Fund, one Debt Service Fund, and three Capital Projects Funds. All but the Permanent Fund and two Special Revenue Funds of the primary government are major funds. How many major Special Revenue Funds would the primary government report in the governmental funds financial statements?

• A) 4.
• B) 3.
• C) 2.
• D) 1.

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Definitions:

Keynesian View

An economic theory stating that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability.

Supply-Side View

An economic perspective emphasizing the importance of increasing production and supply as a key to economic growth, price stability, and employment.

Balanced Budget

A budget where revenues equal expenditures, resulting in no deficit or surplus.

New Classical View

An economic theory that emphasizes the importance of supply-side factors, rational expectations, and market-clearing prices.