If the Fiscal Year Begins Without a Budget and Congress

question 18

Multiple Choice

If the fiscal year begins without a budget and Congress fails to pass continuing resolution, then:

• A) the president has the right to raise the debt ceiling.
• B) federal agencies operate on the basis of the previous year's budget.
• C) the interest rate paid on the national debt automatically increases.
• D) the federal government shuts down.

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Definitions:

Arbitragers

Individuals or entities that attempt to profit from differences in prices across markets by simultaneously buying and selling similar or identical assets.

Pakistani Rupees

The official currency of Pakistan, used as a medium of financial transaction within the country.

Real Exchange Rate

The rate at which the currency of one country can be exchanged for the currency of another country, adjusted for inflation.

Nominal Exchange Rate

The price at which one currency can be exchanged for another currency, without adjustment for inflation.