GFOA Exam CPFO Topic 9 Question 90 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 90
Topic #: 9

[All CPFO Questions]

Four types of credit enhancements are offered by state bond banks. Which of the following is NOT out of those enhancements?

AA moral obligation reserve that will fund one year of debt service

BA state intercept fund that diverts state aid to a defaulting local unit from the state bond bank

CAdditional collateral pledge

DNone of these

Show Suggested Answer

Suggested Answer: D

by Viola at Jun 22, 2024, 10:40 PM

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Louisa

1 months ago

Wait, is the answer C? Additional collateral pledge? That just seems too obvious, but maybe that's the trick...

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Benedict

1 months ago

D has to be the correct answer. The question is asking for the one option that is NOT a credit enhancement, and the other three options all sound like valid enhancements.

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Iesha

1 months ago

Haha, I bet the answer is A. A moral obligation reserve that will fund one year of debt service. That sounds like something a state bond bank would do, but it's not a credit enhancement!

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Zachary

1 months ago

Hmm, I think it's B. A state intercept fund that diverts state aid to a defaulting local unit from the state bond bank. That's a common credit enhancement, right?

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Laura

11 days ago

User 3: I agree with Laura. A is the correct answer.

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Johnetta

17 days ago

User 2: I disagree. I believe it's A. Moral obligation reserve is not one of the enhancements.

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Terrilyn

19 days ago

User 1: I think it's B too. State intercept fund is a common credit enhancement.

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3 months ago

I think the answer is D) None of these.

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