GFOA CPFO Exam - Topic 6 Question 12 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 12
Topic #: 6

[All CPFO Questions]

Banks offer following short-term, loans, EXCEPT:

AA line of credit against which a specified dollar amount may be drawn with interest paid, usually monthly

BBond anticipation notes (BANs) in anticipation of future long-term financing

CTax anticipation notes (TANs) or revenue anticipation of taxes or other revenue that will be received

DNone of these

Show Suggested Answer

Suggested Answer: D

by My at May 03, 2022, 07:17 PM

Limited Time Offer

25%

Off

Get Premium CPFO Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Dominga

4 months ago

I thought all of these were short-term options!

upvoted 0 times

...

Shantell

4 months ago

Wait, are you sure about that? Sounds off to me.

upvoted 0 times

...

Sheron

4 months ago

TANs are common too, so none of these are exceptions.

upvoted 0 times

...

Georgiana

4 months ago

I agree, but BANs are also short-term, right?

upvoted 0 times

...

Mindy

5 months ago

A line of credit is definitely a short-term loan.

upvoted 0 times

...

Elmira

5 months ago

I feel like "None of these" could be the answer since they all seem to be short-term financing options.

upvoted 0 times

...

Ashley

5 months ago

Tax anticipation notes definitely sound familiar, but I can't recall if they fit the definition of short-term loans.

upvoted 0 times

...

Theodora

5 months ago

I remember studying about lines of credit, but I'm not sure if they count as short-term loans.

upvoted 0 times

...

Fabiola

5 months ago

I think bond anticipation notes are technically short-term, but they seem different from the others listed.

upvoted 0 times

...

Viola

5 months ago

This is a tricky one. I'm going to have to think it through carefully. The wording is a bit confusing, but I'll do my best to work it out.

upvoted 0 times

...

Elza

5 months ago

Hmm, this seems like a tricky one. I'll need to think carefully about the differences between type-1 and type-2 hypervisors.

upvoted 0 times

...

Sabrina

5 months ago

Alright, this is a good one. I feel pretty confident about my understanding of this topic, so I'll carefully consider each option and try to eliminate the incorrect statement.

upvoted 0 times

...