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ICMA FMFQ Exam - Topic 1 Question 69 Discussion

Which of the following methods of raising funds will not be used by governments?
D) Issuing equity
A) Direct borrowing from banks
B) Issuing bonds
C) Issuing short-term debt

ICMA FMFQ Exam - Topic 1 Question 69 Discussion

Actual exam question for ICMA's FMFQ exam
Question #: 69
Topic #: 1
[All FMFQ Questions]

Which of the following methods of raising funds will not be used by governments?

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Suggested Answer: D

by Olive at Sep 14, 2024, 06:33 PM

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Rebecka
7 months ago
Short-term debt is a usual method for funding.
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Golda
7 months ago
Wait, can’t believe they’d issue equity! That sounds off.
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Roxane
7 months ago
Direct borrowing from banks is common too.
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Truman
7 months ago
Pretty sure they don’t issue equity.
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Ona
7 months ago
Governments definitely issue bonds all the time.
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Clay
8 months ago
I vaguely recall that direct borrowing from banks is also a method, but I can't remember if it's as common as the others.
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Tawna
8 months ago
I think we practiced a similar question where issuing bonds was definitely a method used by governments, so that might help narrow it down.
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Georgeanna
8 months ago
I'm a bit unsure, but I feel like all the other options are common methods for governments to raise funds.
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Anabel
8 months ago
I remember discussing how governments typically don't issue equity like companies do, so I think D might be the answer.
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Alfred
8 months ago
I think the key here is to remember that governments don't operate like private companies. Issuing equity wouldn't be a method they'd use to raise funds.
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Chaya
8 months ago
Wait, I'm confused. Aren't governments able to borrow directly from banks? I'm not sure about this one.
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Rolande
8 months ago
Okay, I've got this. Governments don't issue equity, so that's the answer. Easy peasy!
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Adelina
8 months ago
Hmm, I'm a bit unsure about this one. Governments can use a variety of financing methods, so I'll need to carefully consider each option.
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Jovita
8 months ago
This seems like a straightforward question about government financing methods. I'll need to think through the different options and eliminate the ones governments wouldn't use.
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Daniel
2 years ago
I agree with Carin. Governments don't usually sell stocks or equity to the public.
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Deja
2 years ago
D) Issuing equity
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Tracey
2 years ago
C) Issuing short-term debt
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Alline
2 years ago
B) Issuing bonds
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Daniela
2 years ago
A) Direct borrowing from banks
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Melissa
2 years ago
I believe option A) Direct borrowing from banks is also not commonly used by governments as they have other methods like issuing bonds.
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Walton
2 years ago
Option B seems like the most common way for governments to raise funds. Bonds are a classic choice.
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Dana
2 years ago
Issuing equity is not typically used by governments to raise funds.
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Fatima
2 years ago
Issuing short-term debt can also be a viable option for governments.
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Chery
2 years ago
Direct borrowing from banks is also a common method used by governments.
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Florinda
2 years ago
Bonds are indeed a popular choice for governments to raise funds.
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Edgar
2 years ago
D) Issuing equity
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Melodie
2 years ago
C) Issuing short-term debt
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Ligia
2 years ago
B) Issuing bonds
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Carmela
2 years ago
A) Direct borrowing from banks
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Vicki
2 years ago
Haha, imagine a government trying to sell shares like a company. That would be a sight to see!
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Valentin
2 years ago
C) Issuing short-term debt
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Lorrine
2 years ago
B) Issuing bonds
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Tamala
2 years ago
A) Direct borrowing from banks
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Macy
2 years ago
I agree with Val. Governments usually don't issue equity because they are not profit-driven entities.
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Val
2 years ago
I think governments won't use option D) Issuing equity.
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Carin
2 years ago
I think option D is the correct answer. Governments typically don't issue equity to raise funds.
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Milly
2 years ago
C) Issuing short-term debt
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Stefania
2 years ago
B) Issuing bonds
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Charlene
2 years ago
A) Direct borrowing from banks
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