Page 1 of 213
CDFM Module 3.1 questions and answers
100% verified.
1. Which clause of the U.S. Constitution requires that "no
Money shall be drawn from the Treasury, but in
Consequence of Appropriations made by Law"?
A) Article 1, Section 7
B) Article 1, Section 8, Clause 1
C) Article 1, Section 9, Clause 7
D) Article 2, Section 9
Answer: C) Article 1, Section 9, Clause 7
Rationale: Article I, Section 9, Clause 7 is the constitutional
fountainhead of appropriations law, establishing the "Power of
the Purse" in Congress. Article 1 Section 8 provides for taxes,
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and Section 7 deals with revenue bills, but Section 9 explicitly
restricts withdrawal from the Treasury.
2. What is the "Basic Axiom" of Fiscal Law as established
in U.S. vs. McCollum (1976)?
A) Public funds may be expended unless specifically
prohibited by Congress.
B) Expenditure of public funds is proper only when authorized
by Congress.
C) Common law principles override statutory fiscal restrictions.
D) The Executive Branch has inherent authority to transfer
funds.
Answer: B) Expenditure of public funds is proper only when
authorized by Congress.
Rationale: This is the fundamental distinction between common
law (you can do what is not prohibited) and fiscal law (you can
only do what is authorized). The Comptroller General consistently
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upholds that statutory authorization is a prerequisite to
expenditure.
3. Which Constitutional provision empowers Congress to
collect taxes?
A) Article 1, Section 7
B) Article 1, Section 8, Clause 1
C) Article 2, Section 8
D) The 5th Amendment
Answer: B) Article 1, Section 8, Clause 1
Rationale: Article 1, Section 8, Clause 1 grants Congress the
power to lay and collect taxes, duties, imposts, and excises.
Article 2 deals with the Executive Branch, making any reference
to "Article 2, Section 8" factually incorrect regarding taxation.
4. True or False: Under the "Common Law" doctrine,
government officials may spend money unless a specific
statute says "no."
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A) True
B) False
Answer: B) False
Rationale: The statement confuses private sector common law
with public fiscal law. In the federal government, the opposite is
true: an official may not spend a dime unless a statute
(appropriation) specifically says "yes".
5. The Budget and Accounting Act of 1921 accomplished
which three major reforms?
A) Established the Congressional Budget Office, created the
Federal Reserve, and banned impoundments.
B) Required a Presidential budget, created the Bureau of the
Budget (OMB), and established the GAO.
C) Authorized the first income tax, created the Treasury
Department, and established fiscal years.
D) Mandated annual appropriations for the military, created
the Joint Chiefs, and established the ADA.
CDFM Module 3.1 questions and answers
100% verified.
1. Which clause of the U.S. Constitution requires that "no
Money shall be drawn from the Treasury, but in
Consequence of Appropriations made by Law"?
A) Article 1, Section 7
B) Article 1, Section 8, Clause 1
C) Article 1, Section 9, Clause 7
D) Article 2, Section 9
Answer: C) Article 1, Section 9, Clause 7
Rationale: Article I, Section 9, Clause 7 is the constitutional
fountainhead of appropriations law, establishing the "Power of
the Purse" in Congress. Article 1 Section 8 provides for taxes,
,Page 2 of 213
and Section 7 deals with revenue bills, but Section 9 explicitly
restricts withdrawal from the Treasury.
2. What is the "Basic Axiom" of Fiscal Law as established
in U.S. vs. McCollum (1976)?
A) Public funds may be expended unless specifically
prohibited by Congress.
B) Expenditure of public funds is proper only when authorized
by Congress.
C) Common law principles override statutory fiscal restrictions.
D) The Executive Branch has inherent authority to transfer
funds.
Answer: B) Expenditure of public funds is proper only when
authorized by Congress.
Rationale: This is the fundamental distinction between common
law (you can do what is not prohibited) and fiscal law (you can
only do what is authorized). The Comptroller General consistently
,Page 3 of 213
upholds that statutory authorization is a prerequisite to
expenditure.
3. Which Constitutional provision empowers Congress to
collect taxes?
A) Article 1, Section 7
B) Article 1, Section 8, Clause 1
C) Article 2, Section 8
D) The 5th Amendment
Answer: B) Article 1, Section 8, Clause 1
Rationale: Article 1, Section 8, Clause 1 grants Congress the
power to lay and collect taxes, duties, imposts, and excises.
Article 2 deals with the Executive Branch, making any reference
to "Article 2, Section 8" factually incorrect regarding taxation.
4. True or False: Under the "Common Law" doctrine,
government officials may spend money unless a specific
statute says "no."
, Page 4 of 213
A) True
B) False
Answer: B) False
Rationale: The statement confuses private sector common law
with public fiscal law. In the federal government, the opposite is
true: an official may not spend a dime unless a statute
(appropriation) specifically says "yes".
5. The Budget and Accounting Act of 1921 accomplished
which three major reforms?
A) Established the Congressional Budget Office, created the
Federal Reserve, and banned impoundments.
B) Required a Presidential budget, created the Bureau of the
Budget (OMB), and established the GAO.
C) Authorized the first income tax, created the Treasury
Department, and established fiscal years.
D) Mandated annual appropriations for the military, created
the Joint Chiefs, and established the ADA.
