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CPFO Debt Exam Practice Questions with 100% Correct Answers | Verified | Latest Update
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CPFO Debt Exam Practice Questions with 100% Correct Answers | Verified | Latest Update
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CPFO Debt Exam Practice Questions with100% Correct Answers | Verified | Latest
Update
If it is not permissible to enter into swap transactions related to an
entity's debt , where would that be stated?
A. Debt Policy
B. Continuing Disclosure Agreement
C. Tax Certificate
D. Underwriter's Agreement
A. Debt Policy
What should be included in an entity's debt policy
A. debt issuance process
B. managing the debt portfolio
C. guidelines for structuring
D. all of the above
D. all of the above
A downward sloping yield curve CANNOT be consistent with which of
the following?
A. Investors anticipate inflation will be higher in the future.
B. Investors anticipate inflation will be lower in the future.
C. Interest rates move higher in the future.
D. Interest rates move lower in the future.
,B. Investors anticipate inflation will be lower in the future.
Which is true about LIBOR?
A. LIBOR does not apply to municipal securities
B. LIBOR only applies to swap contracts aligned with municipal
securities
C. LIBOR can not be referenced in new and needs to be phased out of
existing financing contracts
D. governments can not issue bonds unless they have a contract with
LIBOR
C. LIBOR can not be referenced in new and needs to be phased out of
existing financing contracts
Do all governments have the same levels of debt capacity?
A. Yes, every government must maintain a debt capacity of less than
7%
B. No, each government determines for themselves the appropriate
level of debt capacity consistent with state law
C. No, debt capacity amount is established by a rating agency
D. No, federal law sets the amount of debt capacity for every issuer
B. No, each government determines for themselves the appropriate
level of debt capacity consistent with state law
What is the most important attribute of a GO bond?
A. typically is backed by the full faith and credit of the government
and its taxing authority
B. does not usually require voter or elected body approval
, C. is limited to a certain amount set annually by the federal
government
D. is always issued using a competitive sale
A. typically is backed by the full faith and credit of the government
and its taxing authority
All of the following are associated with a revenue bond transaction
EXCEPT a:
A. full faith and credit pledge.
B. debt service reserve requirement.
C. debt service coverage test.
D. trust indenture.
A. full faith and credit pledge.
TANs, RANS, TRANs, BANs and GANs are all types of:
A. short term municipal note obligations.
B. investment instruments for debt service reserve funds.
C. revenue bonds.
D. lease structures.
A. short term municipal note obligations.
What determines if an entity can enter into a bank loan?
A. state law allows
B. you have discussed the option with your municipal advisor and/or
others on your financing team and determined it is an optimal
financing for your entity.
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