GFOA Exam CPFO Topic 9 Question 90 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 90
Topic #: 9

[All CPFO Questions]

Four types of credit enhancements are offered by state bond banks. Which of the following is NOT out of those enhancements?

AA moral obligation reserve that will fund one year of debt service

BA state intercept fund that diverts state aid to a defaulting local unit from the state bond bank

CAdditional collateral pledge

DNone of these

Show Suggested Answer

Suggested Answer: D

by Viola at Jun 22, 2024, 10:40 PM

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

Submit Cancel

Louisa

14 days ago

Wait, is the answer C? Additional collateral pledge? That just seems too obvious, but maybe that's the trick...

upvoted 0 times

...

Benedict

15 days ago

D has to be the correct answer. The question is asking for the one option that is NOT a credit enhancement, and the other three options all sound like valid enhancements.

upvoted 0 times

...

Iesha

17 days ago

Haha, I bet the answer is A. A moral obligation reserve that will fund one year of debt service. That sounds like something a state bond bank would do, but it's not a credit enhancement!

upvoted 0 times

...

Zachary

21 days ago

Hmm, I think it's B. A state intercept fund that diverts state aid to a defaulting local unit from the state bond bank. That's a common credit enhancement, right?

upvoted 0 times

Terrilyn

2 days ago

User 1: I think it's B too. State intercept fund is a common credit enhancement.

upvoted 0 times

...

Valda

27 days ago

I'm pretty sure the answer is D. None of these. The question is asking for the one option that is NOT a type of credit enhancement offered by state bond banks.

upvoted 0 times