What Are the Broad Types or Classifications of Funds for a Governmental

question 49

Multiple Choice

What are the broad types or classifications of funds for a governmental entity such as a city?

• A) General, governmental, and trust funds.
• B) Governmental, proprietary, and fiduciary funds.
• C) Revenue, trust, and governmental funds.
• D) Enterprise, revenue, and fiduciary funds.
• E) Governmental, agency, and enterprise funds.

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Definitions:

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis, reflecting the risk and time value of money.

Semiannual Interest

Interest that is calculated and paid twice a year.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the bond's face value.

Interest Rates

The proportion of an amount of money levied for its utilization, denoting the expense of borrowing funds or the profit on investments.