GFOA Exam CPFO Topic 7 Question 69 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 69
Topic #: 7

[All CPFO Questions]

Commercial banks issue ______________ which give local governments the money to refinance or refund debt at a lower interest rate.

A(LOCs) Letters of credit

BGO Bonds

CSO Bonds

DState Bonds

Show Suggested Answer

Suggested Answer: A

by Xuan at Apr 21, 2023, 05:08 PM

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

Submit Cancel

Timothy

1 months ago

A) Letters of credit? Really? That doesn't seem right for this question. I'm leaning towards B) GO Bonds as the best answer.

upvoted 0 times

...

Oliva

1 months ago

D) State Bonds seems like a good option, but I'm not entirely sure. I'll have to double-check the details on municipal bond types.

upvoted 0 times

Katy

1 days ago

Yes, GO Bonds are a popular option because they are backed by the government's full faith and credit.

upvoted 0 times

...

Gary

8 days ago

I think GO Bonds are also a common choice for local governments to refinance debt.

upvoted 0 times

...

Camellia

19 days ago

State Bonds seems like a good option, but I'm not entirely sure. I'll have to double-check the details on municipal bond types.

upvoted 0 times

...

Janna

2 months ago

Haha, I bet the correct answer is not 'SO Bonds' - that sounds like a bond for superhero obligations or something!

upvoted 0 times

Brittani

19 days ago

Haha, I bet the correct answer is not 'SO Bonds' - that sounds like a bond for superhero obligations or something!

upvoted 0 times

...

Joseph

20 days ago

D) State Bonds

upvoted 0 times

...

Sherell

26 days ago

C) SO Bonds

upvoted 0 times

...

Jacquline

1 months ago

B) GO Bonds

upvoted 0 times

...

Jose

1 months ago

A) (LOCs) Letters of credit

upvoted 0 times

...

Gail

2 months ago

I think the answer is B) GO Bonds. Municipal governments issue general obligation bonds to raise funds for infrastructure projects and to refinance existing debt.

upvoted 0 times

Rory

1 days ago

What are LOCs used for then?

upvoted 0 times

...

Huey

7 days ago

Yes, you are correct. Municipal governments issue general obligation bonds for various purposes.

upvoted 0 times

...

Markus

10 days ago

I think the answer is B) GO Bonds.

upvoted 0 times

...

Leah

16 days ago

Letters of credit are typically used in international trade to ensure payment between parties.

upvoted 0 times

...

Floyd

2 months ago

What are LOCs used for then?

upvoted 0 times

...

Dorcas

2 months ago

Yes, you are correct. Municipal governments issue general obligation bonds for various purposes.

upvoted 0 times

...

Lili

2 months ago

I think the answer is B) GO Bonds.

upvoted 0 times

...

Roxane

2 months ago

I agree, GO Bonds are a good option for local governments to manage their debt more effectively.

upvoted 0 times

...

Albert

2 months ago

I think GO Bonds help local governments save money by refinancing debt at lower interest rates.

upvoted 0 times

...

Galen

2 months ago

Commercial banks issue GO Bonds.

upvoted 0 times

...