CGFM Practice Test 2

10 free CGFM practice questions in the real exam format, covering the official content areas, with an explanation for every answer.

CGFM Practice Test 2Tutor mode

Question 1 of 10

Legally Based Implications of the Government Financial Environment

A state legislature considers two new taxes: a nondiscriminatory income tax applied to the wages of federal employees who work in the state, and a sales tax whose legal incidence falls directly on a federal agency's purchases in the state. Which statement best describes the limits on the state's taxing power?