Certified Treasury Professional CTP Real Exam Questions and Answers FREE Updated on Aug 29, 2021
CTP Ultimate Study Guide - ValidVCE
NEW QUESTION 454
With the advent of the euro, many U.S. companies have seen a reduction in their number of foreign currency transactions. As a result, these U.S. companies have benefited from which of the following?
I) Reduced FX transaction costs
II) Consolidated banking relationships
III) Simplified exchange risk management
IV) Reduced need to monitor foreign political climates
- A. II and III
- B. I, III, and IV
- C. I, II, and III
- D. I and II
Answer: C
NEW QUESTION 455
The goal of investor relations is to:
- A. maintain the company's stock listing on the NYSE.
- B. make sure all shareholders cast a vote at the annual meeting.
- C. ensure that a company's securities achieve a fair valuation in the marketplace.
- D. ensure equity analysts have all available company information at any point in time.
Answer: C
NEW QUESTION 456
Which of the following is indicative of a consolidated operation?
- A. Transfer pricing agreements between subsidiaries
- B. Intracompany loans
- C. Shared service center
- D. Offshore financing
Answer: C
NEW QUESTION 457
RAL Capital, a lean global financial service provider with revenues of $8 billion, has 10 regional offices located around the world. The RAL global trading groups are structured as profit centers with each center having its own profitability targets. The group's clients consist of large multinational corporations and financial institutions that require the buying and selling of large amounts of currency. The Treasurer is considering reorganizing his department into a profit center. The group processes millions of transactions every year. What is a downside of this scenario?
- A. Need to decentralize treasury operations in order to make a profit center more viable.
- B. May become a viable candidate for downsizing or outsourcing.
- C. Substantial headcount is required to support a profit generation center.
- D. Pressure to produce significant profits may lead to deferred losses and inefficient operations.
Answer: D
NEW QUESTION 458
Which of the following is NOT a short-term cash forecasting technique?
- A. Income statement forecast
- B. Distribution forecast
- C. Receipts and disbursements forecast
- D. Accounts receivable balance pattern forecast
Answer: A
NEW QUESTION 459
A company's accounts receivable balance pattern is shown in the first table. Credit sales are shown in the second table.
What is the cash inflow for the month of August?
- A. $238
- B. $633
- C. $213
- D. $300
Answer: A
NEW QUESTION 460
On the basis of the information above, what level of net collected balances is necessary to compensate a bank for $1.00 worth of services?
- A. $126
- B. $159
- C. $154
- D. $157
Answer: C
NEW QUESTION 461
A short-term bank line with $20 million of unused capacity and an investment in an overnight money market fund are both forms of which liquidity requirement?
- A. Transaction
- B. Precautionary
- C. Strategic
- D. Opportunity
Answer: B
NEW QUESTION 462
XYZ Holdco has multiple credit facilities with a bank under a borrowing agreement that includes certain covenants. A fire has destroyed the manufacturing plant owned by ABC, one of the XYZ subsidiaries that is part of the credit facilities. All loans, including the ABC loan, are up to date and being repaid as required. However, after the fire, the bank notified XYZ that it was in default. Which one of the following covenants is MOST LIKELY a term of the borrowing agreement?
- A. Cross-default provisions
- B. Technical default
- C. Total liabilities to assets ratio default
- D. Material adverse change
Answer: D
NEW QUESTION 463
When evaluating candidates who have responded to an RFP for banking services, a highly leveraged company will probably apply a higher weighting to:
- A. the adequacy of internal controls.
- B. the ability to customize services.
- C. flexible credit terms at competitive rates.
- D. the cost of switching providers.
Answer: C
NEW QUESTION 464
As a result of an employee's intentional actions, an electronic payment to a supplier was misdirected to an unauthorized account. This is an example of which of the following types of risk?
- A. Process and technology risks
- B. Employee and process risks
- C. Process and valuation risks
- D. Employee and technology risks
Answer: B
NEW QUESTION 465
Which cost benefit analysis technique uses the methodology to find where the present value of each project's cash inflows equals the present value of each project's outflows?
- A. Payback period
- B. IRR
- C. NPV
- D. Profitability index
Answer: B
NEW QUESTION 466
Which of the following services allows a single account to be used by a company with multiple units?
- A. Positive pay
- B. High-order prefix
- C. Payor bank services
- D. Check inquiry
Answer: B
NEW QUESTION 467
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. Exception management
- C. Internal and external controls
- D. Valuation of investments
Answer: A
NEW QUESTION 468
Liquidity reserves for opportunistic requirements are typically maintained in the form of:
- A. working capital.
- B. short-term borrowing facilities.
- C. long-term investments.
- D. short-term investments.
Answer: D
NEW QUESTION 469
Based on the following information, what is the required collected balance to cover all monthly service charges?
Deposit Float$10,000 Reserve Requirement5% Earnings Credit Rate15% Monthly Service Charges$6,000 Days in month30
- A. $456,000
- B. $308,222
- C. $486,667
- D. $512,281
Answer: D
NEW QUESTION 470
What does a company with a restrictive current asset investment strategy typically have?
- A. Low accounts receivable balances
- B. High inventory levels
- C. High financing costs
- D. Low tax liabilities
Answer: A
NEW QUESTION 471
All of the following are reasons to use a confirmed irrevocable letter of credit EXCEPT concern about:
- A. the stability of the buyer's bank.
- B. foreign currency exposure.
- C. the buyer's ability to pay.
- D. the ability to receive cross-border payments.
Answer: B
NEW QUESTION 472
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