Which of the Following Would Highlight a Critical Downside of a Federal

question 21

Multiple Choice

Which of the following would highlight a critical downside of a federal system?

• A)the national legislature dominated by a single political party
• B)a component state unable to raise sufficient funds to provide certain government services at the local level
• C)the inability of component states to have any autonomy
• D)local officials unable to make basic decisions without the express consent of the central government

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Definitions:

Lockbox System

A service provided by banks to companies for the receipt of payment from customers, involving the direct sending of payments to a location accessible by the bank, which then deposits the funds into the company's account.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Money Market Securities

Short-term debt instruments, commonly including treasury bills, commercial paper, and certificates of deposit, known for their liquidity and low-risk profile.

Lockbox System

A banking service offered to businesses for collecting payments from clients, using a dedicated post office box to accelerate the process of gathering checks.