#1
Which financial instrument represents a debt obligation of a government?
Treasury bond
ExplanationGovernment debt security
#2
Which of the following is a source of revenue for a state government?
Property taxes
ExplanationTax revenue from property ownership
#3
What is the primary purpose of a sinking fund in state finances?
To retire debt over time
ExplanationDebt repayment mechanism
#4
In the context of state finances, what is the purpose of a capital budget?
To allocate funds for long-term investments
ExplanationLong-term investment planning
#5
In state finances, what is the purpose of a budget surplus?
To invest in infrastructure projects
ExplanationInfrastructure investment funding
#6
What is the primary objective of fund management in state finances?
Optimizing the use of available funds
ExplanationEfficient fund utilization
#7
Which factor is NOT typically considered in the investment decision-making process for state funds?
Political considerations
ExplanationExcluding political factors from investment decisions
#8
Which financial ratio is commonly used to assess the fiscal health of a state?
Debt-to-GDP ratio
ExplanationIndicator of fiscal sustainability
#9
What is the purpose of a stabilization fund in state finances?
To stabilize the economy during economic downturns
ExplanationEconomic downturn mitigation
#10
What does the term 'maturity' refer to in the context of fixed-income securities in state finances?
The date on which the principal is repaid
ExplanationPrincipal repayment date
#11
What does the term 'sovereign wealth fund' refer to in the context of state finances?
A fund owned by the central government
ExplanationGovernment-owned investment fund
#12
In fund management, what is the role of an investment policy statement (IPS)?
Outlining the investment goals and strategies
ExplanationDefining investment objectives and strategies
#13
What is the role of a state comptroller in fund management?
Overseeing financial audits
ExplanationFinancial audit supervision
#14
Which investment strategy aims to maintain a constant proportion of assets in various asset classes regardless of market conditions?
Passive management
ExplanationStatic asset allocation strategy
#15
In the context of state finances, what is the significance of the term 'fiscal policy'?
Control of government spending and taxation
ExplanationGovernment fiscal management