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Which of the following is not a power that a municipality must possess to be considered fiscally independent?

A. Ability to levy taxes.
B. Ability to issue bonds.
C. Ability to enter into contracts.
D. Ability to print currency.

2 Answers

5 votes

Answer:

ability to levy taxes

Step-by-step explanation:

User Andrey Deineko
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Final answer:

The power that a municipality does not need to possess in order to be considered fiscally independent is the ability to print currency. Under the Articles of Confederation, the national government lacked this power.

Step-by-step explanation:

The power that a municipality does not need to possess in order to be considered fiscally independent is the ability to print currency.

Under the Articles of Confederation, the national government lacked the power to coin money, which was one of the limitations that led to its weaknesses. However, it is important to note that this power is reserved for the federal government, not local governments like municipalities.

Municipalities have other important powers that contribute to their fiscal independence, such as the authority to raise revenue, pass local taxes, and make policy and tax decisions under home rule. These powers allow municipalities to manage their finances and provide necessary services to their residents.