CGFM III question with correct answers (rated A+)2023

CGFM III question with correct answers (rated A+)2023Cash Management Improvement Act 1990 - correct answer Improve the transfer of federal funds 31 CFR Part 208 Management of Federal Agency Disbursements - correct answer Requires EFT payments Cash Management - correct answer 1) mutually beneficial relationships with banks 2) collecting and recording cash 3) generating earnings from cash 4) disbursing cash Federal Reserve System Duties - correct answer 1) conducting monetary policy 2) supervising and regulating banks 3) maintaining stability of the financial system 4) providing financial services Warrant - correct answer Drawn on the treasury of a government Intra-bank Transfer - correct answer A request for funds to cover a Zero Balance Account (ZBA) Tax Reform Act of 1986 - correct answer Arbitrage (difference between interest rate paid for fine and the interest rate earned on the same funds) Elements of Investing - correct answer 1) Safety 2) Liquidity 3) Yield Types of Risks - correct answer 1) Credit 2) Market 3) Interest Rate 4) Currency 5) Political Treasury Bills (T-Bills) (ST) - correct 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) - correct answer A savings certificate issued by a bank, depositing money for a specified length of time. Commercial Paper (ST) - correct answer Unsecured promissory notes of $100,000 and up that mature (come due) in 270 days or less. Banker's Acceptance (ST) - correct answer 1) Guaranteed by banks to raise money against future production or sale of goods 2) 90 days or less 3) Sold at discount to mature at par Repurchase Agreement (ST) - correct answer Overnight loans Short Term Mutual Funds (ST) - correct answer 1) Investment Company Act of 1940 2) pools money with other investors Short Term Investment Funds (STIF) (ST) - correct answer 1) offered by large corporations 2) maturities are laddered