Why Is the Power of the Purse an Important Check

question 13

Multiple Choice

Why is the power of the purse an important check for Congress to have over the other two branches?

• A) Congress can balance the federal budget without interference from the other two branches.
• B) By cutting out wasteful spending by the executive branch, Congress can reallocate funds for more important priorities such as national security.
• C) As the most representative branch, Congress should have more powers than the other two branches.
• D) By freezing judges' salaries or cutting funding for federal agencies, Congress can then give the money directly to the states.
• E) By freezing judges' salaries or cutting funding for federal agencies, Congress can state its displeasure with the actions of the other branches and can maintain oversight of how policies are implemented.

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Definitions:

Current Stock Price

The price at which a specific stock is currently trading on the stock market.

Preferred Stock

A category of corporate ownership that has a greater entitlement to the company's assets and profits compared to common stock, typically receiving payouts before common stockholders.

Rate of Return

The profit or deficit yielded from an investment across a specific timespan, explicated as a percentage of the investment’s base cost.