#1
Which financial instrument represents a debt obligation of a government?
Equity
Treasury bond
Common stock
Derivative
#2
Which of the following is a source of revenue for a state government?
Budget deficit
Property taxes
Foreign aid
Outstanding loans
#3
What is the primary purpose of a sinking fund in state finances?
To retire debt over time
To support social welfare programs
To finance new infrastructure projects
To cover budget deficits
#4
In the context of state finances, what is the purpose of a capital budget?
To fund ongoing operational expenses
To allocate funds for long-term investments
To regulate interest rates
To manage foreign exchange reserves
#5
In state finances, what is the purpose of a budget surplus?
To cover budget deficits
To reduce taxes
To invest in infrastructure projects
To finance social welfare programs
#6
What is the primary objective of fund management in state finances?
Maximizing tax revenue
Minimizing government spending
Optimizing the use of available funds
Expanding the national debt
#7
Which factor is NOT typically considered in the investment decision-making process for state funds?
Risk tolerance
Return on investment
Political considerations
Market liquidity
#8
Which financial ratio is commonly used to assess the fiscal health of a state?
Price-to-Earnings (P/E) ratio
Current ratio
Debt-to-GDP ratio
Return on Investment (ROI)
#9
What is the purpose of a stabilization fund in state finances?
To fund infrastructure projects
To stabilize the economy during economic downturns
To pay off national debt
To subsidize public services
#10
What does the term 'maturity' refer to in the context of fixed-income securities in state finances?
The period until the security becomes worthless
The date on which the principal is repaid
The interest rate paid on the security
The credit rating of the security
#11
What does the term 'sovereign wealth fund' refer to in the context of state finances?
A fund for public welfare programs
A fund managed by private individuals
A fund owned by the central government
A fund invested in foreign currencies
#12
In fund management, what is the role of an investment policy statement (IPS)?
Specifying the fund manager's salary
Outlining the investment goals and strategies
Determining the interest rates on government bonds
Setting the budget for state projects
#13
What is the role of a state comptroller in fund management?
Approving government expenditures
Enforcing tax collection
Overseeing financial audits
Managing the state pension fund
#14
Which investment strategy aims to maintain a constant proportion of assets in various asset classes regardless of market conditions?
Active management
Passive management
Value investing
Market timing
#15
In the context of state finances, what is the significance of the term 'fiscal policy'?
Management of public debts
Control of government spending and taxation
Regulation of the stock market
Foreign exchange rate management