GFOA CPFO Exam Practice Test Instant Access

Question 1

In issuing bonds, Governments usually take following steps EXCEPT:

ACompensation balance

BDecision on the advisability of issuing debt

CHow to finance the debt

DPreparation, selling and administration of repayments.

Answer : A

Question 2

If the $20,000 is loaned at a stated interest rate of 10%with the requirement that an 18% minimum compensating balance be kept, the APR (annual percentage rate) is:

A12.07%

B12.00%

C12.2%

D13%

Answer : C

Question 3

Which of the following is not included in long-term credit products offered by banks?

ALong-term capital lease agreements

BBonds agreements

CA line of credit

DNone of these

Answer : C

Question 4

Most Government Issue bond in denominations of $5000, which underwriters call:

A'Five bonds''

BFives

CBase bonds

DBoth A&B

Answer : D

Question 5

To decide whether to issue bond publicly or privately ______________

AA cost comparison should be made

BA demo issue should be done

CAn international research on that issue should be done

DNone of these

Answer : A

Question 6

A full-Faith-and-credit bond is a term used for:

ALease Financing

BRevenue Bonds

CGeneral obligation Bonds

DNone of these

Answer : C

Question 7

All of the following are core banking services EXCEPT:

AInvestment management

BSecurity services

CReconciliation Services

DConcentration and Zero balance

Answer : A

GFOA CPFO Certified Public Finance Officer Exam Practice Test