Ace the 2026 CGFM Exam – Turbocharge Your Path to Financial Mastery!

The concept of popular sovereignty is fundamentally rooted in the idea that the ultimate authority and legitimacy of government stems from the consent of the governed, particularly through the act of voting. This principle posits that power resides with the people, and they have the right to shape their government based on collective decision-making. In democratic systems, this is manifested in elections where citizens exercise their right to vote, thereby directly influencing legislation and governance. This foundational concept is pivotal in ensuring that the government remains accountable to the people and reflects their will, making "citizens holding ultimate authority through voting" the most fitting description of popular sovereignty.

The other options touch on aspects of governance but do not encapsulate the essence of popular sovereignty as accurately. For example, government authority derived from legislation emphasizes the role of laws rather than the people's consent, while the notion of absolute power of the national government suggests a top-down authority that does not involve citizen input. Similarly, state control over local matters implies a more hierarchical structure of governance, which contrasts with the idea of popular sovereignty that champions citizen involvement and authority.