CGFM EXAM 3 COMPREHENSIVE TEST
PAPER WITH SOLVED QUESTIONS
◉ Short Term Fixed income Securities
Answer: include treasury bills, certificates of deposits, commercial
paper, bankers acceptance, repurchase agreements, mutual funds,
and short term -investment bonds
◉ Long-term fixed income securities
Answer: include term and serial bonds, debentures, zero coupon
bonds and STRIPS
◉ STRIPS (Separate Trading of Registered Interest and Principal
Securities)
Answer:
◉ Debentures
Answer: is also a debt certificate . However, it is backed only by
the General credit of the issuer, not by Assests
◉ Equity Securities
Answer: include stocks, mutual funds, and index funds
◉ what are the most effective internal controls for investments
,Answer: Comprehensive investment policies manual
segregation of duties
appropriate training and education fr those making investment
decisions
◉ Prudent person rule
Answer: States that an Employee Retirement Income Security Act
plan fiduciary has legal and financial obligations not to take more
risks when investing employee benefit program funds than a
reasonably knowledgeable, prudent investor would under similar
circumstances.
◉ bond funds
Answer: Mutual funds that invest primarily in bonds
◉ commercial paper
Answer: short-term unsecured debt issued by large corporations
◉ prudent expert standard rule
Answer: The requirement that a fiduciary investor must act as
someone with familiarity with matters relating to the
management of money, not just prudence . This means that those
responsible for selecting and monitoring investments must know
what they are doing and must it solely in the interest of the
participants and beneficiaries
, ◉ Credit Evaluation ( Four Cs)
Answer: Character - typically the most important factor
Capacity
Collateral
Capital
◉ Debt Collection Improvement ACT 1996
Answer: federal agencies are requires to transfer most debt that is
delinquent over 180 days to the department of treasury or debt
collection center designated by the department for further
collection
◉ administrative offsets
Answer:
◉ Asset Sales
Answer:
◉ Where a are close out steps outlined
Answer: OMB Circular A 129 Section V subs section e
omb requires that debt more than two years old and which is not
considered to be collectible economically is to be written off in
accordance with the appropriate accounting standards
PAPER WITH SOLVED QUESTIONS
◉ Short Term Fixed income Securities
Answer: include treasury bills, certificates of deposits, commercial
paper, bankers acceptance, repurchase agreements, mutual funds,
and short term -investment bonds
◉ Long-term fixed income securities
Answer: include term and serial bonds, debentures, zero coupon
bonds and STRIPS
◉ STRIPS (Separate Trading of Registered Interest and Principal
Securities)
Answer:
◉ Debentures
Answer: is also a debt certificate . However, it is backed only by
the General credit of the issuer, not by Assests
◉ Equity Securities
Answer: include stocks, mutual funds, and index funds
◉ what are the most effective internal controls for investments
,Answer: Comprehensive investment policies manual
segregation of duties
appropriate training and education fr those making investment
decisions
◉ Prudent person rule
Answer: States that an Employee Retirement Income Security Act
plan fiduciary has legal and financial obligations not to take more
risks when investing employee benefit program funds than a
reasonably knowledgeable, prudent investor would under similar
circumstances.
◉ bond funds
Answer: Mutual funds that invest primarily in bonds
◉ commercial paper
Answer: short-term unsecured debt issued by large corporations
◉ prudent expert standard rule
Answer: The requirement that a fiduciary investor must act as
someone with familiarity with matters relating to the
management of money, not just prudence . This means that those
responsible for selecting and monitoring investments must know
what they are doing and must it solely in the interest of the
participants and beneficiaries
, ◉ Credit Evaluation ( Four Cs)
Answer: Character - typically the most important factor
Capacity
Collateral
Capital
◉ Debt Collection Improvement ACT 1996
Answer: federal agencies are requires to transfer most debt that is
delinquent over 180 days to the department of treasury or debt
collection center designated by the department for further
collection
◉ administrative offsets
Answer:
◉ Asset Sales
Answer:
◉ Where a are close out steps outlined
Answer: OMB Circular A 129 Section V subs section e
omb requires that debt more than two years old and which is not
considered to be collectible economically is to be written off in
accordance with the appropriate accounting standards
