CERTIFIED GOVERNMENT FINANCIAL MANAGER (CGFM) EXAM
STUDY GUIDE | QUESTIONS & ANSWERS | NEW 2026/2027 UPDATE |
GRADED A+| 100% CORRECT (VERIFIED SOLUTIONS)
Cash Management Improvement Act 1990 -
ANSWER
Improve the transfer of federal funds
31 CFR Part 208 Management of Federal Agency Disbursements -
ANSWER
Requires EFT payments
Cash Management -
ANSWER
1) mutually beneficial relationships with banks
2) collecting and recording cash
3) generating earnings from cash
4) disbursing cash
Federal Reserve System Duties -
ANSWER
1) conducting monetary policy
2) supervising and regulating banks
3) maintaining stability of the financial system
4) providing financial services
Warrant -
ANSWER
Drawn on the treasury of a government
Intra-bank Transfer -
ANSWER
, A request for funds to cover a Zero Balance Account (ZBA)
Tax Reform Act of 1986 -
ANSWER
Arbitrage (difference between interest rate paid for fine and the interest rate earned on the same
funds)
Elements of Investing -
ANSWER
1) Safety
2) Liquidity
3) Yield
Types of Risks -
ANSWER
1) Credit
2) Market
3) Interest Rate
4) Currency
5) Political
Treasury Bills (T-Bills) (ST) -
ANSWER
1) less than 1 year
2) issued at a discount
3) paid face value at maturity
4) backed by government
Certificate of Deposit (CD) (ST) -
ANSWER
A savings certificate issued by a bank, depositing money for a specified length of time.
STUDY GUIDE | QUESTIONS & ANSWERS | NEW 2026/2027 UPDATE |
GRADED A+| 100% CORRECT (VERIFIED SOLUTIONS)
Cash Management Improvement Act 1990 -
ANSWER
Improve the transfer of federal funds
31 CFR Part 208 Management of Federal Agency Disbursements -
ANSWER
Requires EFT payments
Cash Management -
ANSWER
1) mutually beneficial relationships with banks
2) collecting and recording cash
3) generating earnings from cash
4) disbursing cash
Federal Reserve System Duties -
ANSWER
1) conducting monetary policy
2) supervising and regulating banks
3) maintaining stability of the financial system
4) providing financial services
Warrant -
ANSWER
Drawn on the treasury of a government
Intra-bank Transfer -
ANSWER
, A request for funds to cover a Zero Balance Account (ZBA)
Tax Reform Act of 1986 -
ANSWER
Arbitrage (difference between interest rate paid for fine and the interest rate earned on the same
funds)
Elements of Investing -
ANSWER
1) Safety
2) Liquidity
3) Yield
Types of Risks -
ANSWER
1) Credit
2) Market
3) Interest Rate
4) Currency
5) Political
Treasury Bills (T-Bills) (ST) -
ANSWER
1) less than 1 year
2) issued at a discount
3) paid face value at maturity
4) backed by government
Certificate of Deposit (CD) (ST) -
ANSWER
A savings certificate issued by a bank, depositing money for a specified length of time.
