The City of Bamberg, Which Has a Fiscal Year End

question 52

Multiple Choice

The City of Bamberg, which has a fiscal year end of December 31, issued a nine-month $1,000,000 bond anticipation note on July 1. The city is planning to renew or re-issue the bond anticipation notes for another six-month period when they mature. What would the Capital Projects Fund liability for the note be on December 31?

• A) $0.
• B) $500,000.
• C) $1,000,000.
• D) $2,000,000.

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Definitions:

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world’s nations, including all of the great powers.

Currency Intervention

The action by a central bank or government to stabilize or manipulate the value of its nation's currency in the foreign exchange market.

Foreign Currency

Currency used in a country other than one's own, involved in international trade and investing.

Exchange Rate Risk

The potential for investors to experience losses due to changes in the exchange rate between currencies.