APPENDIX 7
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Appendix 7: Answers to Reinforcement Quizzes
Answers to the Reinforcement Quiz ñ Section I, Chapter 1
1. Which of the following is inappropriate?
a.
The person receiving a deposit makes out the deposit slip.
b. The person making out the deposit slip makes the deposit.
c.
The person sending out the bill records the transaction in the
system.
d. The person recording transactions reconciles the bank statements.
Answer: (b). The person making the deposit slip has the ability to alter
the deposit. Thus, these are not compatible duties. Often, the person
receiving the deposit also makes out the deposit slip.
2. A warrant is:
a.
a request for funds drawn on the treasury of a government.
b. a request for funds drawn on a financial institution regulated by the
Federal Reserve System.
c.
a request for funds to cover a ZBA.
d. a request for the payment of a recurring electronic payment.
Answer: (a). A request for funds drawn on a financial institution is a
check. A request for funds to cover a ZBA is an intra-bank transfer. A
request for the payment of a recurring electronic payment is a request
for an electronic funds transfer.
3. Which of the following should not be done through electronic payments?
a.
the payroll of the government
b. payments to retirees
c.
a payment for a one-time purchase
d. payments for the purchase of investments
Answer: (c). The amount of time involved in setting up an account for
an electronic payment would be too costly for a one-time purchase.
This is particularly true if the amount is small.
4. A government should establish a different bank account for each of its
funds. True or false?
Answer: False. A government should concentrate its accounts for
increased investment potential. The accounting system should be used
to track the cash balances for each fund.
5. Which of the following is not a duty of the Federal Reserve System?
a.
guaranteeing direct loans of the federal government
b. maintaining stability of the financial system
c. conducting monetary policy for the government
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AGA Study Guide 3, 2016 Edition

Appendix 7: Answers to Reinforcement Quizzes
d. supervising and regulating banking institutions
Answer: (a). The Federal Reserve System does not guarantee loans of
the federal government. Loans are guaranteed by agencies of the
federal government.
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AGA CGFM Study Guide 3: Governmental Financial Management and Control