[Dec-2021] Pass CTP Exam in First Attempt UpdatedCTP PrepAwayETE Exam Question
Certified Treasury Professional Dumps CTP Exam for Full Questions - Exam Study Guide
NEW QUESTION 436
A company has asked its marketing, payroll and sales teams to collaborate in finding a solution that could augment its customer base, reduce payroll cost and increase sales. The solution has to be market ready. Which of the following will serve all 3 purposes?
- A. Ghost cards
- B. Smart cards
- C. Stored value card
- D. PIN based cards
Answer: C
NEW QUESTION 437
Company X, a US based multi-national, is exploring the option of locating a subsidiary in another country where there has been some historical risk of expropriation of local assets of foreign corporations. Therefore, as part of the risk assessment process the company must specifically quantify the:
- A. political risk.
- B. property risk.
- C. physical security risk.
- D. financial institution risk.
Answer: A
NEW QUESTION 438
A company that has a nationwide workforce may use which of the following methods for disbursing payroll to minimize the number of bank accounts?
I) Payable through draft
II) Multiple drawee checks
III) ACH credit transfers
- A. I and III only
- B. II only
- C. II and III only
- D. I only
Answer: C
NEW QUESTION 439
Which of the following global cash concentration methods would be MOST appropriate for a company with operations in the United States, Germany, Mexico, and Japan?
- A. Physical pooling
- B. Bank overlay structure
- C. Notional pooling
- D. National pooling
Answer: A
NEW QUESTION 440
Treasury policies and procedures should outline roles and responsibilities for which of the following activities?
- A. Monitoring compliance with trade payment terms
- B. Initiating and approving internal and external transfers
- C. Establishing and communicating a company's credit policies
- D. Determining how much earnings are to be paid out in dividends
Answer: B
NEW QUESTION 441
Which of the following is normally MORE significant for a corporation?
- A. Firewall breaches by employees
- B. Unintentional actions by employees
- C. Sarbanes-Oxley violations by employees
- D. Defalcation events by employees
Answer: B
NEW QUESTION 442
A company wants to gather daily balance reporting from its international subsidiaries' bank accounts. Which of the following systems would allow the company's bank to gather the balance positions from the local banks?
- A. Giros
- B. SWIFT
- C. EDI
- D. CHIPS
Answer: B
NEW QUESTION 443
While revising the investment policy, the CFO performs a sensitivity analysis for the company's cash flow from investments, and identifies that increasing the maximum dollar value for bond purchases will improve returns by 10% on average, all other variables being equal. What issue will the CFO now need to address in the investment policy?
- A. Performance management and reporting
- B. Valuation of investments
- C. Exception management
- D. Internal and external controls
Answer: A
NEW QUESTION 444
Which of the following statements is (are) true about non-repetitive wires?
I) They may require additional security steps.
II) They are typically used for cash concentration.
III) They may be used for transactions where dates, parties, and/or amounts may be variable.
- A. I and II
- B. I and III
- C. I, II, and III
- D. III
Answer: B
NEW QUESTION 445
A company is evaluating its employee healthcare expense and payroll applications. If the company wishes to provide maximum convenience to its employees, which payment method is the BEST choice?
- A. Stored value cards
- B. Travel cards
- C. Checks
- D. Purchasing cards
Answer: A
NEW QUESTION 446
T-bill discount rate = 5.85% T-bill face value = $100,000 Initial term = 90 days
What is the bond equivalent yield on this T-bill?
- A. 5.87%
- B. 5.94%
- C. 6.02%
- D. 5.95%
Answer: C
NEW QUESTION 447
When considering Fedwire, ACH and CHIPS as 3 different payment systems, which of the following applies only to Fedwire?
- A. Real-time intraday net settlement of transactions.
- B. Settlement is final when receiving bank is notified of transfer.
- C. Company sends request of transfer directly to its bank.
- D. Each bank member funds an account maintained at the Fed.
Answer: B
NEW QUESTION 448
Company A has decided to purchase $3,000,000 of real estate from Company B.
Company A will make the payment in 3 parts. The electronic payments will be sent from Bank A to Bank B.
On Day 1 Company A will send a $400,000 check as a deposit, which is deductible from the balance. The check is expected to clear in 4 days. On Day 2, two payments are initiated, one wire transfer for $2,000,000 and an ACH for $600,000 to complete the balance. On Day 2 what percentage of the payment to Company B is NOT final?
- A. 66.7%
- B. 86.7%
- C. 100%
- D. 33.3%
Answer: D
NEW QUESTION 449
Based on the following information, how much money will XYZ Company owe the bank for monthly service charges after the earnings credit is applied?
Average Ledger Balance$500,000 Deposit Float$10,000 Reserve Requirement10% Earnings Credit Rate5% Monthly Service Charges$5,000 Days in month30
- A. $68.49
- B. $561.64
- C. $436.99
- D. $0
Answer: D
NEW QUESTION 450
Which function involves evaluating alternative projects in relation to one another and in relation to the company's cost structure?
- A. Capital budgeting
- B. Financial risk management
- C. Corporate forecasting
- D. Financial planning
Answer: A
NEW QUESTION 451
An arrangement in which a borrower makes periodic payments to a separate custodial account that is used to repay debt is known as a:
- A. balloon payment
- B. mortgage
- C. sinking fund
- D. zero-coupon bond
Answer: C
NEW QUESTION 452
If JPY120.14 = U.S.$1.00 and EUR .7564 = U.S.$1.00, how many JPY = EUR1.00?
- A. JPY.00629
- B. JPY90.874
- C. JPY120.8964
- D. JPY158.831
Answer: D
NEW QUESTION 453
The key parties involved in a disaster recovery plan are generally classified as internal resources or external counterparties. When evaluating the risks of both parties, which of the following can be assumed?
- A. The systems used by both parties must be compatible.
- B. The infrastructure linking the parties' systems must be considered.
- C. The review of internal resources takes greater importance.
- D. The disaster recovery sites of both parties must be in the same location.
Answer: B
NEW QUESTION 454
The Treasurer for XYZ Manufacturing, Inc. recently exchanged a portion of its euro holdings into U.S. dollars to purchase gas futures contracts. This was done in anticipation of an assumed rise in gas prices due to the continued weakening of the U.S. dollar. Which of the following types of risk is being mitigated?
- A. Operational
- B. Foreign exchange
- C. Commodity price
- D. Sovereign
Answer: C
NEW QUESTION 455
BF Company, a manufacturer of food products, reported financial information shown in the Exhibit for the end of the year. BF Company is subject to covenants in its commercial paper program. It is in compliance with which of the following?
- A. Minimum working capital of $10,000
- B. Maximum long-term debt to capital of 52.5%
- C. Maximum dividends of 50% of net income
- D. Minimum cash flow to total debt of 45%
Answer: B
NEW QUESTION 456
Which of the following statements is true about a forward foreign exchange contract?
- A. It does not require an underlying commercial transaction because the contract trades on its own.
- B. It specifies delivery of currencies at an exchange rate established today for a currency transaction that settles more than two days in the future.
- C. It is a right to buy or sell foreign currency at a specified price within a fixed time period.
- D. It is an exchange of currencies at the outset of a transaction at a fixed rate determined by the spot markets.
Answer: B
NEW QUESTION 457
Which of the following statements are true about collected balances?
I.They can be lower than ledger balances.
II.They are influenced by the bank's availability schedule.
III.They exclude negative account balances.
IV.They may generate an earnings credit.
- A. II, III, and IV only
- B. I, II, and IV only
- C. II and III only
- D. I and IV only
Answer: B
NEW QUESTION 458
What is a KEY reason that both a lessee and a lessor would enter into a lease financing agreement?
- A. It reduces technological obsolescence.
- B. It substitutes debt.
- C. It eliminates maintenance of assets.
- D. It provides tax benefits.
Answer: D
NEW QUESTION 459
MICR encoding errors may be detected by all of the following TMS modules EXCEPT:
- A. positive pay module.
- B. prior day reporting.
- C. reverse positive pay module.
- D. current day reporting.
Answer: D
NEW QUESTION 460
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