AGA AGA-CGFM Online Practice Questions and Exam Preparation

AGA AGA-CGFM Online Questions & Answers

• Question 1:

  Coverage for losses due to employee dishonesty is _________ type of coverage for crimes in bond issues.

  A. On-Promise
  B. Fidelity
  C. Off-Promise
  D. Forgery
  B. Fidelity

• Question 2:

  Governments should also set service response goals. For example:

  A. To process 100% of all citizen claims within 96 hours of receipt
  B. To close 75% of claims investigated within 60 days
  C. To review and process at least 95% of workers' compensation claims within five days
  D. All of these
  D. All of these

• Question 3:

  Assume that the bank's monthly costs are $12,250, the 30-day Treasury bill rate is 10.4%, and the bank is subject to a 15% reserve requirement. What is the MCB (Minimum compensating balance)?

  A. $141,629
  B. $142,629
  C. $141,529
  D. None of these
  A. $141,629

• Question 4:

  If the $20,000 is loaned at a stated interest rate of 10%with the requirement that an 18% minimum compensating balance be kept, the APR (annual percentage rate) is:

  A. 12.07%
  B. 12.00%
  C. 12.2%
  D. 13%
  C. 12.2%

• Question 5:

  An ISF has the following capital equipment in service for the stated time. Based upon the information below, using the straight-line method, what should be charged for depreciation at year-end?

  

  A. $8,155
  B. $6,438
  C. $4,267
  D. $2,171
  B. $6,438

• Question 6:

  Eleven different types of funds, issued by Government Authorities, are classified into three major groups. Which one of the following statements represents those three groups?

  A. Governmental, Proprietary and Fiduciary
  B. Governmental, State/Provincial, Local
  C. Governmental, Fixed, Temporary
  D. Yearly, Semi annually and Quarterly
  A. Governmental, Proprietary and Fiduciary

• Question 7:

  Localities contract with a consulting engineer to make a preliminary feasibility study of a project, prepare a detailed design and construction specifications, coordinate construction activities, and advice on special problems that might occur during construction. Consulting engineers are compensated in which of the following way/s?

  A. A lump-sum payment when a project is clearly defined
  B. Cost-plus-fixed-fee basis when a project is not clearly defined
  C. A percentage of construction costs, the percentage being based on a scale developed by the Society of civil engineers
  D. All of these
  D. All of these

• Question 8:

  The government finance association recommends public sale, but under which of the following condition:

  I. The issue has on uninsured credit rating of A or above

  II. The issue is not so large that it cannot be absorbed by the market.

  III. The issue is not so small as to attract too few investors

  IV.

  Interest rates are stable and market demand is strong

  V.

  The market view the issue as warily complex or innovation.

  VI.

  The issue is backed by full faith and credit or by a strong revenue system.

  A. I, II, III
  B. I, II, III
  C. I, II, III, IV, V
  D. All EXCEPT V
  D. All EXCEPT V

• Question 9:

  Which of the following is not included in principal investment strategies?

  A. Interest Rate anticipation
  B. Sector Allocation
  C. Yield curve anticipation
  D. None of these
  D. None of these

• Question 10:

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

  A. A list of individual securities held at the end of the reporting period
  B. Realized and unrealized gains or losses resulting from appreciation or market value of securities
  C. Average weighted yield to maturity of investments compared to applicable benchmarks.
  D. All of these
  D. All of these