Test Prep Test Prep Certifications CGFM Questions & Answers

• Question 91:

  RFP (Request for proposals) includes:

  A. A description of past account activity

  B. The services required

  C. The date of pre-proposal conference to answer questions about the RFP

  D. All of these

  Correct Answer: D

• Question 92:

  Governments have three principal options for selecting a bank. Which one of the following is the best out of those options?

  A. They may handle different funds or accounts.

  B. They can rotate their business among several banks in the community

  C. Should select banking services competitively with a request for proposals (RFP)

  D. None of these

  Correct Answer: C

• Question 93:

  A ________ sweeps payroll, accounts, payables, and daily collections into a concentration account daily.

  A. ACH block

  B. Cash flow and security services

  C. ZBA

  D. None of these

  Correct Answer: C

• Question 94:

  Under the ___________ arrangement, governments completely outsource the reconciliation to the bank, which reports items issued and paid, issued but not paid, and not yet issued.

  A. Partial reconciliation

  B. Full reconciliation

  C. Reverse positive pay

  D. None of these

  Correct Answer: B

• Question 95:

  As electronic commerce is the ripe of FRAUD, governments should secure bank security services that reduce the possibility of fraud, including all of these EXCEPT:

  A. Positive pay

  B. ACH block

  C. Reverse Positive pay

  D. None of these

  Correct Answer: D

• Question 96:

  Credit services, Trustee and related services and investment management services are the Secondary services provided by banks.

  A. True

  B. False

  C. It depends

  D. Both A and C

  Correct Answer: A

• Question 97:

  Governments should safely invest a high percentage of their available cash at competitive rates of return. The yield should be compared to a benchmark such as:

  A. The 3-month Treasury bill rate

  B. The 1-year Treasury note rate

  C. The Russell thousand fixed income index

  D. All of the above

  Correct Answer: D

• Question 98:

  Governments and Non-profits can invest 100% of their available funds by using:

  A. A bank's Zero balance account (ZBA)

  B. Mutual Funds Agencies

  C. OTC market investments

  D. All of these

  Correct Answer: A

• Question 99:

  The Unites Way receives $1,500,000 in funds in a lump sum at the beginning of the year and has constant cost and predictable annual cash outlays. Eight percent is estimated to be earned at securities with each security transaction costing $40 plus 0.5 percent of the dollar amount received. What will be the optimum security scale using Baumol Model?

  A. $38700

  B. $38730

  C. $38830

  D. None of these

  Correct Answer: B

• Question 100:

  A conflict of interest occurs when an employee enjoys monetary gain at public expense. Possible conflict of interest problems may be all of the following EXCEPT:

  A. A city purchasing agent buys supplies from a local pharmacy that is jointly owned by a department head and his wife.

  B. A member of a city council is a silent partner in a printing company that is conducting business with the city.

  C. A Board of education contracts with a board member to serve as architect for a new building.

  D. None of these

  Correct Answer: D