GFOA Exam CPFO Topic 7 Question 69 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 69
Topic #: 7

[All CPFO Questions]

Commercial banks issue ______________ which give local governments the money to refinance or refund debt at a lower interest rate.

A(LOCs) Letters of credit

BGO Bonds

CSO Bonds

DState Bonds

Show Suggested Answer

Suggested Answer: A

by Xuan at Apr 21, 2023, 05:08 PM

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Timothy

1 months ago

A) Letters of credit? Really? That doesn't seem right for this question. I'm leaning towards B) GO Bonds as the best answer.

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Oliva

1 months ago

D) State Bonds seems like a good option, but I'm not entirely sure. I'll have to double-check the details on municipal bond types.

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Gary

6 days ago

I think GO Bonds are also a common choice for local governments to refinance debt.

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Camellia

18 days ago

State Bonds seems like a good option, but I'm not entirely sure. I'll have to double-check the details on municipal bond types.

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Janna

2 months ago

Haha, I bet the correct answer is not 'SO Bonds' - that sounds like a bond for superhero obligations or something!

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Brittani

18 days ago

Haha, I bet the correct answer is not 'SO Bonds' - that sounds like a bond for superhero obligations or something!

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Joseph

19 days ago

D) State Bonds

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Sherell

24 days ago

C) SO Bonds

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Jacquline

1 months ago

B) GO Bonds

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Jose

1 months ago

A) (LOCs) Letters of credit

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Gail

2 months ago

I think the answer is B) GO Bonds. Municipal governments issue general obligation bonds to raise funds for infrastructure projects and to refinance existing debt.

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Huey

5 days ago

Yes, you are correct. Municipal governments issue general obligation bonds for various purposes.

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Markus

9 days ago

I think the answer is B) GO Bonds.

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Leah

14 days ago

Letters of credit are typically used in international trade to ensure payment between parties.

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Floyd

1 months ago

What are LOCs used for then?

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Dorcas

2 months ago

Yes, you are correct. Municipal governments issue general obligation bonds for various purposes.

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Lili

2 months ago

I think the answer is B) GO Bonds.

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Roxane

2 months ago

I agree, GO Bonds are a good option for local governments to manage their debt more effectively.

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Albert

2 months ago

I think GO Bonds help local governments save money by refinancing debt at lower interest rates.

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Galen

2 months ago

Commercial banks issue GO Bonds.

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