Question

What does the 'Not to exceed' language in an appropriation identify?

1) Limit
2) Requirement
3) Obligation
4) Condition

Answer 1

The 'Not to exceed' language in an appropriation identifies a limit on government spending, in line with Congress's constitutional power of the purse.

Step-by-step explanation:

The 'Not to exceed' language in an appropriation identifies a limit. When Congress passes an appropriations bill, this phrase sets a maximum cap on how much money can be spent for a particular purpose. This ensures that government spending does not go beyond the amount that Congress has authorized. This practice follows Section 9 Clause 7 of the Constitution, which grants Congress the power over government spending, requiring presidential adherence to congressionally approved budgets. It serves as a critical component for checks and balances within the federal government.

Guiding Questions Answers:

1. The term for the rule which states the percentage of every deposit that is to be set aside as a legal reserve is known as the reserve requirement.
2. The fractional reserve system allows the money supply to expand by enabling banks to lend a portion of their deposits.
3. Open market operations are activities carried out by central banks to buy or sell government securities in the open market to control the money supply.