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AGA Exam CGFM Topic 4 Question 65 Discussion

Actual exam question for AGA's CGFM exam
Question #: 65
Topic #: 4
[All CGFM Questions]

A state transfers cagh to a broker and the broker transfers securities to the state, promising to repay the cash plus

interest in exchange for the return of the same securities. This transaction is an example of

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Suggested Answer: A

by Felix at Jan 23, 2025, 02:50 AM

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Adolph
22 days ago
Hey, at least they're not asking about derivatives this time. I'd be completely lost in that financial maze!
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Mayra
2 days ago
A: B) a repurchase agreement.
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Irma
1 months ago
I can't believe they're asking about repurchase agreements on this exam. It's like they're trying to trip us up with all these financial jargon! But I'm going to go with B) because it sounds the most like what's described.
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Thurman
2 days ago
I'm not sure, but maybe it's D) instead? It sounds like it could be a reverse repurchase agreement.
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Nan
3 days ago
I agree, these questions can be tricky. But I think you're right, B) seems like the best choice.
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Ressie
1 months ago
I'm not sure, but I think it could also be D) a reverse repurchase agreement, where the broker sells securities to the state with an agreement to repurchase them later.
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Allene
1 months ago
This is a tricky one! I was tempted to go with A) an arbitrage agreement, but the mention of the state transferring cash and the broker transferring securities makes me think B) a repurchase agreement is the correct answer.
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Carma
28 days ago
I think B) a repurchase agreement is the right choice.
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Amber
2 months ago
I agree with Rochell, because in a repurchase agreement, securities are sold with a commitment to repurchase them at a later date.
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Tran
2 months ago
Hmm, I'm not sure about this one. The wording is a bit confusing, but I'm leaning towards D) a reverse repurchase agreement. Isn't that when the broker sells securities to the state and promises to buy them back?
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Raylene
Reverse repurchase agreement seems to be the most fitting option here, given the context of the transaction.
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Luisa
24 hours ago
I agree, it definitely sounds like a reverse repurchase agreement based on the scenario.
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Chana
1 months ago
Yeah, that makes sense. The broker selling securities and promising to buy them back matches the description.
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Valentine
1 months ago
I think you're right, it does sound like a reverse repurchase agreement.
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Kenda
2 months ago
I think the answer is B) a repurchase agreement. The description matches the definition of a repo, where the state sells securities to the broker and agrees to buy them back later with interest.
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Rochell
2 months ago
I think the answer is B) a repurchase agreement.
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