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Question: 1 / 875

What requirement does the Debt Collection Improvement Act impose on federal agencies?

To ignore delinquent debts

To report all current and delinquent debt

The Debt Collection Improvement Act requires federal agencies to report all current and delinquent debts to the Department of the Treasury. This is crucial for enhancing the visibility of federal debts and ensuring that the government has a comprehensive overview of its receivables. Reporting helps facilitate the collection of these debts through various means, such as garnishing wages or withholding tax refunds, thereby promoting accountability and encouraging prompt payment by debtors.

The act is designed to improve federal debt collection practices, making it a vital tool for managing government finances. The focus is on ensuring that debts are actively tracked and pursued rather than overlooked or ignored. This aligns with the intent of the legislation to improve the efficiency of the federal collection process.

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To approve loans without background checks

To eliminate all outstanding debts

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