What Is the Minimum Number of Funds to Be Used

question 51

Multiple Choice

What is the minimum number of funds to be used by a governmental unit?

• A) One; the General Fund
• B) Two; the General Fund and one permanent fund
• C) As many as necessary to fulfill legal requirements and sound financial administration
• D) A & C

---

Definitions:

Capital Gain

The increase in value of an asset or investment above its purchase price, often realized upon sale of the asset.

Total Return

The complete return on an investment over a given time period, including both capital gains and dividends or interest, expressed as a percentage of the initial investment cost.

Dividends

Payments made by a corporation to its shareholder members as a distribution of profits.

Canadian Treasury Bills

Short-term government securities issued by the Government of Canada, maturing in one year or less, and used as a means for the government to raise funds.