Campaign Finance and Political Action Committees (PACs) MCQs USA

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1. What is the primary purpose of Political Action Committees (PACs)?

a) To draft new legislation
b) To directly fund political candidates and campaigns
c) To conduct public opinion polls
d) To oversee election integrity
Answer: b) To directly fund political candidates and campaigns

2. What law significantly regulates federal campaign finance in the United States?

a) The Federal Election Campaign Act (FECA)
b) The Hatch Act
c) The Lobbying Disclosure Act
d) The National Voter Registration Act
Answer: a) The Federal Election Campaign Act (FECA)

3. What is a Super PAC?

a) A PAC that can make unlimited donations to candidates
b) A PAC that can coordinate directly with candidates
c) A type of PAC that cannot make independent expenditures
d) A PAC limited to $5,000 in contributions per candidate
Answer: a) A PAC that can make unlimited donations to candidates

4. What was the impact of the Supreme Court’s decision in Citizens United v. FEC (2010)?

a) It limited the amount of money that PACs can donate to candidates
b) It allowed unlimited independent political expenditures by corporations and unions
c) It required PACs to disclose their donors
d) It imposed stricter regulations on campaign contributions
Answer: b) It allowed unlimited independent political expenditures by corporations and unions

5. Which act established the Federal Election Commission (FEC)?

a) The Bipartisan Campaign Reform Act (BCRA)
b) The Federal Election Campaign Act (FECA)
c) The McCain-Feingold Act
d) The Political Reform Act
Answer: b) The Federal Election Campaign Act (FECA)

6. What is the main function of the Federal Election Commission (FEC)?

a) To conduct elections
b) To regulate and enforce campaign finance laws
c) To manage political party conventions
d) To draft new campaign finance legislation
Answer: b) To regulate and enforce campaign finance laws

7. How much can an individual contribute to a federal candidate per election cycle as of 2024?

a) $2,800
b) $5,000
c) $10,000
d) $25,000
Answer: a) $2,800

8. What is the maximum amount an individual can contribute to a PAC per year?

a) $5,000
b) $10,000
c) $2,800
d) $25,000
Answer: a) $5,000

9. What are “soft money” contributions?

a) Money given directly to candidates and reported to the FEC
b) Donations made to political parties for party-building activities
c) Contributions used for independent expenditures by Super PACs
d) Funds used to pay for campaign staff salaries
Answer: b) Donations made to political parties for party-building activities

10. Which act banned soft money contributions to national political parties?

a) The Federal Election Campaign Act (FECA)
b) The Bipartisan Campaign Reform Act (BCRA)
c) The McCain-Feingold Act
d) The Citizens United Act
Answer: b) The Bipartisan Campaign Reform Act (BCRA)

11. What are “independent expenditures”?

a) Donations given directly to a candidate’s campaign
b) Expenditures made by PACs and Super PACs independently of candidates
c) Funds used by candidates for travel expenses
d) Contributions made to political party organizations
Answer: b) Expenditures made by PACs and Super PACs independently of candidates

12. What is a “527 organization”?

a) An organization that advocates for specific policies and candidates
b) A tax-exempt group that can raise and spend unlimited amounts of money on political activities
c) A government agency that regulates campaign finance
d) A type of PAC with limited fundraising abilities
Answer: b) A tax-exempt group that can raise and spend unlimited amounts of money on political activities

13. What is the main difference between a PAC and a Super PAC?

a) PACs can contribute directly to candidates, while Super PACs cannot
b) Super PACs can contribute directly to candidates, while PACs cannot
c) PACs have no limits on contributions, while Super PACs do
d) Super PACs are regulated by state laws, while PACs are not
Answer: a) PACs can contribute directly to candidates, while Super PACs cannot

14. Which of the following types of committees can raise and spend unlimited amounts of money on political campaigns?

a) Traditional PACs
b) Super PACs
c) 501(c)(3) organizations
d) 527 organizations
Answer: b) Super PACs

15. What is the purpose of “hard money” contributions?

a) To support party-building activities
b) To be used for direct contributions to candidates and their campaigns
c) To fund independent expenditures
d) To support non-political charitable causes
Answer: b) To be used for direct contributions to candidates and their campaigns

16. How do 501(c)(4) organizations differ from PACs?

a) 501(c)(4) organizations can engage in political activities but do not have to disclose their donors
b) PACs are allowed to engage in unlimited political activities
c) 501(c)(4) organizations cannot engage in any political activities
d) PACs are not tax-exempt organizations
Answer: a) 501(c)(4) organizations can engage in political activities but do not have to disclose their donors

17. Which Supreme Court case ruled that political spending is a form of protected free speech under the First Amendment?

a) Bush v. Gore
b) Citizens United v. FEC
c) Buckley v. Valeo
d) McConnell v. FEC
Answer: b) Citizens United v. FEC

18. What does the term “bundling” refer to in campaign finance?

a) Collecting and delivering large donations from multiple individuals to a candidate
b) Organizing a fundraiser for a political party
c) Combining independent expenditures from various PACs
d) Merging multiple PACs into one organization
Answer: a) Collecting and delivering large donations from multiple individuals to a candidate

19. What is the legal limit on contributions from a PAC to a federal candidate per election cycle as of 2024?

a) $5,000
b) $10,000
c) $25,000
d) $50,000
Answer: a) $5,000

20. What is the main function of a “Leadership PAC”?

a) To support the leadership goals of a politician through fundraising and contributions
b) To directly manage a candidate’s campaign
c) To coordinate political party activities
d) To conduct research on political issues
Answer: a) To support the leadership goals of a politician through fundraising and contributions

21. Which type of organization is prohibited from coordinating directly with candidates or their campaigns?

a) Traditional PACs
b) Super PACs
c) 527 organizations
d) 501(c)(3) organizations
Answer: b) Super PACs

22. Which act was designed to address the influence of money in politics and increase transparency?

a) The Federal Election Campaign Act (FECA)
b) The Bipartisan Campaign Reform Act (BCRA)
c) The McCain-Feingold Act
d) The Citizens United Act
Answer: b) The Bipartisan Campaign Reform Act (BCRA)

23. What is the primary purpose of “disclosure requirements” in campaign finance laws?

a) To limit the amount of money that can be raised
b) To ensure transparency about the sources of campaign funds
c) To control the timing of campaign advertisements
d) To regulate the content of campaign speeches
Answer: b) To ensure transparency about the sources of campaign funds

24. What role do “527 committees” play in campaign finance?

a) They raise and spend unlimited amounts on political advocacy and campaign activities
b) They are strictly limited in the amount they can spend on political activities
c) They only manage the spending of federal campaign funds
d) They are regulated directly by the FEC
Answer: a) They raise and spend unlimited amounts on political advocacy and campaign activities

25. Which of the following is true about “soft money”?

a) It is regulated and limited by federal law
b) It was banned for national party committees by the BCRA
c) It can be used for specific candidate campaigns
d) It is primarily used for campaign ads by Super PACs
Answer: b) It was banned for national party committees by the BCRA

26. How did the ruling in Buckley v. Valeo (1976) impact campaign finance laws?

a) It upheld limits on individual contributions but struck down limits on independent expenditures
b) It allowed unlimited contributions to candidates
c) It required the full disclosure of all political donations
d) It banned all forms of political donations
Answer: a) It upheld limits on individual contributions but struck down limits on independent expenditures

27. What is the function of a “Super PAC” compared to a traditional PAC?

a) Super PACs can make unlimited independent expenditures, while traditional PACs cannot
b) Super PACs can coordinate directly with candidates, while traditional PACs cannot
c) Super PACs are regulated by state laws, while traditional PACs are regulated federally
d) Super PACs can only contribute to party-building activities
Answer: a) Super PACs can make unlimited independent expenditures, while traditional PACs cannot

28. What is a “contribution limit”?

a) The maximum amount that can be spent on campaign advertisements
b) The maximum amount that an individual or group can donate to a candidate or PAC
c) The minimum amount that must be raised for a campaign to be considered viable
d) The total amount a candidate can spend during an election
Answer: b) The maximum amount that an individual or group can donate to a candidate or PAC

29. What does the term “hard money” refer to in campaign finance?

a) Donations that are not regulated by federal law
b) Contributions that are limited and reported to the FEC
c) Funds raised through unregulated sources
d) Money spent on independent expenditures
Answer: b) Contributions that are limited and reported to the FEC

30. How are campaign finance laws enforced in the United States?

a) Through state election boards only
b) By the Federal Election Commission (FEC) and state authorities
c) By the Department of Justice alone
d) Through voluntary compliance by political parties
Answer: b) By the Federal Election Commission (FEC) and state authorities

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