What Are Categorical Grants and Block Grants? Why Does the U.S.Congress

question 34

Essay

What are categorical grants and block grants? Why does the U.S.Congress tend to prefer categorical grants to block grants? Why do some political leaders nonetheless see block grants as preferable to categorical grants? If you were a member of Congress,which approach would you advocate and why?

---

Definitions:

M1

A category of the money supply that includes all physical money, such as coins and currency, as well as demand deposits and other liquid assets held by the central bank.

M2

An indicator of the monetary base that encompasses cash, deposits in checking accounts, and readily convertible quasi-cash assets.

Money Supply

The collective amount of all financial means in an economy, considering cash, coins, and deposits in checking and savings accounts, at a specific moment.

Backed by Gold

Refers to a currency that is guaranteed by gold reserves, meaning its value is supported by the amount of gold held by the issuing authority.