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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Otis

2 months ago

I got this! The answer is B) Revenue and Bond anticipation notes (RAN and BANs). Those are the only ones that don't involve taxes, which is what the question is asking about. Easy peasy!

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Socorro

9 days ago

User 3: Actually, it's D) None of these

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Gail

13 days ago

User 2: No, I believe it's C) Tax-exempt commercial paper

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Bong

1 months ago

User 1: I think the answer is A) Tax anticipation notes (TANs)

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Sharen

2 months ago

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 months 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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Katheryn

30 days ago

User 4: I think all of these are valid options for governments to borrow from

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Annice

1 months ago

User 3: Tax-exempt commercial paper is another option for governments to borrow from

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Maddie

1 months ago

User 2: I believe they also borrow from revenue and bond anticipation notes (RAN and BANs)

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Lea

1 months ago

User 1: I think governments can borrow from tax anticipation notes (TANs)

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Justine

2 months 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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