GFOA Exam CPFO Topic 7 Question 99 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 99
Topic #: 7

[All CPFO Questions]

Which of the following is not included in long-term credit products offered by banks?

ALong-term capital lease agreements

BBonds agreements

CA line of credit

DNone of these

Show Suggested Answer

Suggested Answer: C

by Dierdre at Sep 18, 2024, 11:55 AM

Limited Time Offer

25%

Off

Get Premium CPFO Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Elfriede

4 months ago

This question is about as clear as mud. I feel like the bank is trying to trick us with these options. Where's the 'All of the above' choice when you need it?

upvoted 0 times

...

Ettie

4 months ago

I mean, a long-term capital lease agreement is basically the bank saying, 'Hey, we'll let you use our stuff for a really long time.' Seems pretty long-term to me.

upvoted 0 times

Rossana

3 months ago

D) None of these

upvoted 0 times

...

Merlyn

3 months ago

C) A line of credit

upvoted 0 times

...

Lenny

3 months ago

B) Bonds agreements

upvoted 0 times

...

Azzie

4 months ago

A) Long-term capital lease agreements

upvoted 0 times

...

Wynell

5 months ago

None of these? Really? That's like the teacher saying, 'None of the above are correct.' What kind of a cop-out is that?

upvoted 0 times

Camellia

4 months ago

C) A line of credit

upvoted 0 times

...

Brice

4 months ago

A) Long-term capital lease agreements

upvoted 0 times

...

Jody

4 months ago

B) Bonds agreements

upvoted 0 times

...

Nu

5 months ago

But a line of credit is a short-term credit product, not long-term. So, I still think it's C).

upvoted 0 times

...

Phuong

5 months ago

I disagree, I believe it's A) Long-term capital lease agreements.

upvoted 0 times

...

Nu

5 months ago

I think the answer is C) A line of credit.

upvoted 0 times

...

Fletcher

5 months ago

Bonds agreements? Sounds like the bank is trying to get us to spy on 007 or something. I'm pretty sure that's not a standard banking service.

upvoted 0 times

Shonda

4 months ago

Exactly! It's all about raising capital for the bank's operations.

upvoted 0 times

...

Daniel

4 months ago

Oh, that makes sense. So, it's actually a legitimate financial product then?

upvoted 0 times

...

Jerry

4 months ago

Yeah, it does sound mysterious. But I think it's just a way for banks to raise funds from investors.

upvoted 0 times

...

Wilda

4 months ago

Haha, I agree! Bonds agreements sound so secretive, like we're in a spy movie or something.

upvoted 0 times

...

Rosio

4 months ago

D) None of these

upvoted 0 times

...

Dwight

4 months ago

C) A line of credit

upvoted 0 times

...

Helene

4 months ago

B) Bonds agreements

upvoted 0 times

...

Gianna

5 months ago

A) Long-term capital lease agreements

upvoted 0 times

...

Melvin

5 months ago

A line of credit? Isn't that like a bank's way of saying 'We trust you enough to let you borrow money whenever you need it?' Clearly not a long-term credit product.

upvoted 0 times

Alica

4 months ago

So the correct answer is C) A line of credit.

upvoted 0 times

...

Louvenia

4 months ago

Long-term capital lease agreements and bonds agreements are examples of long-term credit products.

upvoted 0 times

...

Josefa

5 months ago

A line of credit is actually considered a short-term credit product.

upvoted 0 times

...