Which of the Following Best Describes How Many Funds a Government

question 110

Multiple Choice

Which of the following best describes how many funds a government should use?

• A) One for each revenue source
• B) Two at a minimum; the General Fund and one enterprise fund
• C) As many as necessary to fulfill legal requirements and sound financial administration
• D) None of the above

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Definitions:

Marginal Tax Rates

The rate at which the last dollar of a taxpayer's income is taxed, indicating the rate applied to each additional dollar of income.

Budget Deficit

A financial situation where a government spends more money than it receives in revenue over a specified period.

Maturity Stage

The final phase in a product's lifecycle or a bond's life where growth stabilizes, sales level off, and a bond becomes due for payment.