Which of the Following Is True Regarding the Composition of the Comprehensive

question 118

Multiple Choice

Which of the following is true regarding the composition of the Comprehensive Annual Financial Report (CAFR) ?

• A) The CAFR is required in order to be in conformity with Generally Accepted Accounting Principles (GAAP).
• B) The CAFR is to include both blended and discretely presented component units.
• C) The CAFR contains four major sections: introductory, financial, supplementary, and statistical.
• D) All of the above are true.

---

Definitions:

Money Supply

The sum of all financial resources in the form of cash, coins, and bank account balances present in an economy at a certain time.

Tight Money Policy

A monetary policy strategy used by central banks to slow economic growth by increasing interest rates and reducing the supply of money.

Government Bonds

Fixed-income securities issued by a government to support government spending, typically offering a regular interest payment and repayment of the principal at maturity.

Easy Money

A monetary policy stance characterized by low interest rates and high availability of credit to encourage economic growth.