GFOA Exam CPFO Topic 4 Question 85 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 85
Topic #: 4

[All CPFO Questions]

Governments borrow from the either banks or tax-exempt money market funds in anticipation of taxes, revenues, bonds, or improved market conditions. Some of such conditions are as follows EXCEPT:

ATax anticipation notes (TANs)

BRevenue and Bond anticipation notes (RAN and BANs)

CTax-exempt commercial paper

DNone of these

Show Suggested Answer

Suggested Answer: B

by Emeline at Apr 21, 2024, 01:04 PM

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Sharen

Ha! This is a trick question. The correct answer is obviously D) None of these. Governments don't actually borrow from money market funds, they just print more money like true financial wizards.

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Rosenda

2 days ago

Hmm, I'm not too sure about this one. They all seem like valid options for governments to borrow from. I'm going to have to think this through carefully.

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Justine

14 days ago

I'm pretty sure the answer is C) Tax-exempt commercial paper. That's the only one that doesn't fit the description of the conditions mentioned in the question.

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