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AGA-CGFM Real Exam Questions

CGFM Certified Government Financial Manager

203 questions available · Page 1 of 21

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Question 1 Single choice

Governments have three principal options for selecting a bank.

Which one of the following is the best out of those options?

  1. A

    They may handle different funds or accounts.

  2. B

    They can rotate their business among several banks in the community

  3. C

    Should select banking services competitively with a request for proposals (RFP)

  4. D

    None of these

Show answer and explanation

Correct answer: C

Question 2 Single choice

The Financial institution should adjust the collateral (related to securities) daily in response to market value changes known as:

  1. A

    Marketing to market

  2. B

    Market to market

  3. C

    Marketing securities

  4. D

    None of these

Show answer and explanation

Correct answer: A

Question 3 Single choice

Fund-level financial statements are prepared to present:

  1. A

    both a short and long term perspective on governmental finances.

  2. B

    information on financing activities.

  3. C

    information that is more narrowly focused than mandated by government standards.

  4. D

    a detailed short term view of government services.

Show answer and explanation

Correct answer: D

Question 4 Single choice

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:

  1. A

    Tax anticipation notes (TANs)

  2. B

    Revenue and Bond anticipation notes (RAN and BANs)

  3. C

    Tax-exempt commercial paper

  4. D

    None of these

Show answer and explanation

Correct answer: D

Question 5 Single choice

Commercial papers are sold through:

  1. A

    Secondary market

  2. B

    Dealers

  3. C

    Directly by issuers and has no secondary market

  4. D

    Both B&C

Show answer and explanation

Correct answer: D

Question 6 Single choice

Assume an inventory has an average monthly amount on hand of $200,000 and annual usage of
$800,000. The amount of inventory turns is:

  1. A

    5 turns

  2. B

    4 turns

  3. C

    3 turns

  4. D

    8 turns

Show answer and explanation

Correct answer: B

Question 7 Single choice

The financial adviser:

  1. A

    prepares the overall financing plan

  2. B

    helps to obtain a rating and market the bonds when the financial adviser also acts as the underwriter

  3. C

    Secure and assess the property owners

  4. D

    Only A&B

Show answer and explanation

Correct answer: D

Question 8 Single choice

The principal advantage of a CIP (Capital improvement Program) is that______________, including their project designs, land acquisition, permitting, and acquiring financing.

  1. A

    It provides for sufficient lead time to plan for projects.

  2. B

    ensures the orderly replacement of capital facilities

  3. C

    Minimal costs of putting the asset in operating conditions

  4. D

    None of these

Show answer and explanation

Correct answer: A

Question 9 Single choice

Initially Line item budgets were used by the local governments but afterwards more reformed practices has taken its place and grouped its purpose. Those refined and more manageable categories are all EXCEPT:

  1. A

    Salaries

  2. B

    Supplies

  3. C

    Equipment

  4. D

    Loans

Show answer and explanation

Correct answer: D

Question 10 Single choice

Risks are not assumed should, if possible, be transferred either by a ______________.

  1. A

    Hold-harmless contract clause

  2. B

    Waiver of subrogation

  3. C

    Both of these

  4. D

    None of these

Show answer and explanation

Correct answer: C