GFOA CPFO Exam Practice Test Instant Access

Question 1

The federal government requires non-profit and privet firms to make _______________ assumption regarding future interest rates, wage increases, inflation and the like.

AImplicit, one understated by another

BExplicit

CBoth A&B

DNone of these

Answer : C

Question 2

Banks offer following short-term, loans, EXCEPT:

AA line of credit against which a specified dollar amount may be drawn with interest paid, usually monthly

BBond anticipation notes (BANs) in anticipation of future long-term financing

CTax anticipation notes (TANs) or revenue anticipation of taxes or other revenue that will be received

DNone of these

Answer : D

Question 3

The investment officer should report the status of investment at least quarterly (or monthly), including:

AA list of individual securities held at the end of the reporting period

BRealized and unrealized gains or losses resulting from appreciation or market value of securities

CAverage weighted yield to maturity of investments compared to applicable benchmarks.

DAll of these

Answer : D

Question 4

Which of the following is not included in general guidelines for a diversified investment portfolio?

ADo not over-concentrate securities from a specific issue or business sector

BInvest in securities that have varying maturities

CLimited investment in securities with higher credit risk

Dnever invest in readily liquid securities

Answer : D

Question 5

Cash management program has all of the following components EXCEPT:

ATrained personnel

BA cash management policy

CSound investment practices

DNone of these

Answer : D

Question 6

The lease agreement contains a ___________ clause that permits the government to cancel the capital lease, without defaulting, by not appropriating payment for the lease.

AAppropriation

BNon-appropriation

CIt depends

DNone-of these

Answer : B

Question 7

Governments are increasingly using capital lease financing because it:

ADose not pledge full-faith-and-credit

Bis not subject to voter approval

Cis usually not subject to a state's Go debt cap

DAll of these

Answer : D

GFOA Certified Public Finance Officer Exam Practice Test