CGFM EXAM 3 ACTUAL SCRIPT WITH
100 PERCENT CORRECT ANSWERS
◉ 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
◉ four type of measures that can be used to monitor credit
programs
, Answer: Activity Measures ( workload)
Effectiveness Measures ( Results)
Status measures
Efficiency Measures ( lowering ur unit cost/time to do something)
◉ Debt Collection improvement (DCIA) of 1996
Answer:
◉ the key components of government credit programs
Answer: credit extension
account servicing
debt collection
close-out
program monitoring
◉ Contract Types
Answer: • Fixed-price contracts - prices are not subject to
adjustment The contractor bears risk of performance
• Cost-reimbursable contracts provide for the payment of the
allowable cost incurred to the extent specified in the contract
◉ Types of Cost Reimbursable Contracts
Answer: Cost Plus a fixed fee
100 PERCENT CORRECT ANSWERS
◉ 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
◉ four type of measures that can be used to monitor credit
programs
, Answer: Activity Measures ( workload)
Effectiveness Measures ( Results)
Status measures
Efficiency Measures ( lowering ur unit cost/time to do something)
◉ Debt Collection improvement (DCIA) of 1996
Answer:
◉ the key components of government credit programs
Answer: credit extension
account servicing
debt collection
close-out
program monitoring
◉ Contract Types
Answer: • Fixed-price contracts - prices are not subject to
adjustment The contractor bears risk of performance
• Cost-reimbursable contracts provide for the payment of the
allowable cost incurred to the extent specified in the contract
◉ Types of Cost Reimbursable Contracts
Answer: Cost Plus a fixed fee
