Which of the following is true of municipal, county, and school district governments in the United States?
A. They all conduct legal transactions with other units of government.
B. They are prohibited from conducting financial transactions with other units of government.
C. Their relationships with each other, and the state and federal governments are fixed, in the modern era.
D. Very few of them have taxing authority.
E. They are not a part of the federal system.
Answer: A
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