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Capital Projects Funds Do Not Report Long-Term Obligations in the Fund

question 10

True/False

Capital projects funds do not report long-term obligations in the fund.


Definitions:

Mortgage-Related

Pertains to financial instruments or activities that involve the financing of real estate transactions through loans secured by a mortgage.

Federal National Mortgage Association

A government-sponsored enterprise (GSE) known as Fannie Mae; it expands the secondary mortgage market by securitizing mortgages in the form of mortgage-backed securities.

U.S. Treasury

Refers to the federal government department responsible for managing government revenue and also to the securities (like bonds) it issues, considered low-risk investments.

Put Option

A financial contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a specified price within a specified time.

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