CTP Exam Practice Questions with Verified Answers Rated A
Over the past 3 years XYZ Company has expanded
into multiple countries and significantly grown its A company is based in the US and has an operating
banking relationships. The company now incurs subsidiary in Germany. With a stable US dollar and
significant expenses related to payment transaction depreciating Euro, the Company's cash manager may
costs and maintaining multiple bank connections. elect to:
What shoudl the company use to cobat these rising A. Pool excess funds int he US to offset Germany
costs. defecits
A. SWIFT network B. Implement a dollar-based multilateral netting
B. ACH Network system
C. CHIPS network C. Start lending receivables from the German
D. TARGET 2 - ANSWER -A subsidiary
D. establish a multi currency account in the US -
ANSWER -C
An Instrument that gives the right to buy a stated
number of shares of common stock at a specified
price is known as A bank issues a letter of credit (L/C) and receives a
a. An equity warrant request for payment under the L/C. The buyer notifies
B. a Put Option the issuing bank not to make payment because there
C. A zero Coupon Bond is a dispute over the quality of the merchandise.
D. A subordinate debenture - ANSWER -A However, the documents received fully comply with
the terms of the L/C. Which of the following
statements is true?
An arrangement in which a borrower makes periodic
payments to a seperate custodial account that is
used to repay debt is known as a A. The buyer may immediately return the
A. sinking fund merchandise and cancel the L/C.
B. Balloon payment B. The bank may delay payment until reimbursed by
C. Mortgage the buyer.
D. Zero-Coupon Bond - ANSWER -A C. The bank may delay payment, provided the seller
is notified of the dispute within three business days.
D. The bank must make payment and is entitled to
Netting is used by which of the following as a cross- immediate reimbursement from the buyer. -
border payment technique? ANSWER -
A. European giro providers B. Foreign subsidiaries of The KEY decision in using CCD+ and CTX formats
a company C. Counterparties in a letter of credit for B2B payments is:
transaction
D. TARGET participants - ANSWER -D
A. whether to keep the payment and remittance
information together or separate.
Which of the following is a characteristic of giro B. whether to use the Internet or an EDI spoke to
systems used in countries in Europe? transmit electronic payments.
A. They Operate through their postal service C. whether to use an EDI or a UN/EDIFACT protocol
B. They are primarily used for company-to-company to transfer the value electronically.
payments D. whether an evaluated receipts or paid-on-
C. they do not replace checks for the payment of bills production technique is being used for the transfer. -
D. They do not allow the use of direct debits and ANSWER -
credits - ANSWER -A
, CTP Exam Practice Questions with Verified Answers Rated A
which one of the following ties a user's private key to D. A Japanese company's foreign subsidiary in the
a user's public key U.S. has a payable denominated in dollars. -
ANSWER -B
A. Digital signature
B. Digital certificate
C. digitized signature Which of the following is NOT a key area to consider
D. digital Token - ANSWER -B when establishing treasury policies?
For a defined benefit plan, A. Equity method investments accounting
AFP CTP : Practice Test B. Medium-term financing
C. Management reporting
D. Foreign currency management - ANSWER -
A. plan assets equal plan liabilities. B. plan assets C
can be less than plan liabilities.
C. plan assets are greater than plan equity.
D. plan assets always equal plan equity. - The Governmental Accounting Standards Board
ANSWER -B (GASB) is the authoritative standard- setting body for
which of the following?
With respect to the Sarbanes-Oxley Act, a company A. Private universities
may avoid additional reporting requirements by: B. Healthcare organizations
C. Public works agencies
D. Publicly traded companies - ANSWER -c
A. issuing shares in an IPO.
B. providing an SSAE 16.
C. redeeming bond issues. A cash manager has determined that the break-even
D. delisting its securities. - ANSWER -D amount for justifying a wire transfer over an ACH for
concentration of funds is $145,000. Using a wire
instead of an ACH givesthe company use of the
Which of the following would be expected to happen funds two days earlier to make overnight
on the ex-dividend date? investments. Based on a wire transfer cost of $10.00
and an ACH transaction cost of $0.70, what is the
company's overnight investment interest rate on a
A. The stock is sold with the dividend attached. 365-day year basis?
B. The stock price drops.
C. The stock's volume increases. A. 0.95% B. 1.17% C. 2.34% D. 2.57% -
D. The stock's dividend is paid. - ANSWER -B ANSWER -B
Which of the following is subject to transaction Which of the following is NOT a drawback to using
exposure? ROI as a performance measure?
A. A U.S. company's foreign subsidiary in Japan has A. It may be misleading when cash flows are not
a receivable denominated in Yen. evenly distributed over time.
B. A Japanese company's foreign subsidiary in the B. It does not consider the profit generated by a
U.S. has a receivable denominated in Yen. project.
C. A U.S. company's foreign subsidiary in Japan has C. It does not include a charge for cost of capital.
a payable denominated in Yen. D. It may lead to rejection of a positive NPV project. -
Over the past 3 years XYZ Company has expanded
into multiple countries and significantly grown its A company is based in the US and has an operating
banking relationships. The company now incurs subsidiary in Germany. With a stable US dollar and
significant expenses related to payment transaction depreciating Euro, the Company's cash manager may
costs and maintaining multiple bank connections. elect to:
What shoudl the company use to cobat these rising A. Pool excess funds int he US to offset Germany
costs. defecits
A. SWIFT network B. Implement a dollar-based multilateral netting
B. ACH Network system
C. CHIPS network C. Start lending receivables from the German
D. TARGET 2 - ANSWER -A subsidiary
D. establish a multi currency account in the US -
ANSWER -C
An Instrument that gives the right to buy a stated
number of shares of common stock at a specified
price is known as A bank issues a letter of credit (L/C) and receives a
a. An equity warrant request for payment under the L/C. The buyer notifies
B. a Put Option the issuing bank not to make payment because there
C. A zero Coupon Bond is a dispute over the quality of the merchandise.
D. A subordinate debenture - ANSWER -A However, the documents received fully comply with
the terms of the L/C. Which of the following
statements is true?
An arrangement in which a borrower makes periodic
payments to a seperate custodial account that is
used to repay debt is known as a A. The buyer may immediately return the
A. sinking fund merchandise and cancel the L/C.
B. Balloon payment B. The bank may delay payment until reimbursed by
C. Mortgage the buyer.
D. Zero-Coupon Bond - ANSWER -A C. The bank may delay payment, provided the seller
is notified of the dispute within three business days.
D. The bank must make payment and is entitled to
Netting is used by which of the following as a cross- immediate reimbursement from the buyer. -
border payment technique? ANSWER -
A. European giro providers B. Foreign subsidiaries of The KEY decision in using CCD+ and CTX formats
a company C. Counterparties in a letter of credit for B2B payments is:
transaction
D. TARGET participants - ANSWER -D
A. whether to keep the payment and remittance
information together or separate.
Which of the following is a characteristic of giro B. whether to use the Internet or an EDI spoke to
systems used in countries in Europe? transmit electronic payments.
A. They Operate through their postal service C. whether to use an EDI or a UN/EDIFACT protocol
B. They are primarily used for company-to-company to transfer the value electronically.
payments D. whether an evaluated receipts or paid-on-
C. they do not replace checks for the payment of bills production technique is being used for the transfer. -
D. They do not allow the use of direct debits and ANSWER -
credits - ANSWER -A
, CTP Exam Practice Questions with Verified Answers Rated A
which one of the following ties a user's private key to D. A Japanese company's foreign subsidiary in the
a user's public key U.S. has a payable denominated in dollars. -
ANSWER -B
A. Digital signature
B. Digital certificate
C. digitized signature Which of the following is NOT a key area to consider
D. digital Token - ANSWER -B when establishing treasury policies?
For a defined benefit plan, A. Equity method investments accounting
AFP CTP : Practice Test B. Medium-term financing
C. Management reporting
D. Foreign currency management - ANSWER -
A. plan assets equal plan liabilities. B. plan assets C
can be less than plan liabilities.
C. plan assets are greater than plan equity.
D. plan assets always equal plan equity. - The Governmental Accounting Standards Board
ANSWER -B (GASB) is the authoritative standard- setting body for
which of the following?
With respect to the Sarbanes-Oxley Act, a company A. Private universities
may avoid additional reporting requirements by: B. Healthcare organizations
C. Public works agencies
D. Publicly traded companies - ANSWER -c
A. issuing shares in an IPO.
B. providing an SSAE 16.
C. redeeming bond issues. A cash manager has determined that the break-even
D. delisting its securities. - ANSWER -D amount for justifying a wire transfer over an ACH for
concentration of funds is $145,000. Using a wire
instead of an ACH givesthe company use of the
Which of the following would be expected to happen funds two days earlier to make overnight
on the ex-dividend date? investments. Based on a wire transfer cost of $10.00
and an ACH transaction cost of $0.70, what is the
company's overnight investment interest rate on a
A. The stock is sold with the dividend attached. 365-day year basis?
B. The stock price drops.
C. The stock's volume increases. A. 0.95% B. 1.17% C. 2.34% D. 2.57% -
D. The stock's dividend is paid. - ANSWER -B ANSWER -B
Which of the following is subject to transaction Which of the following is NOT a drawback to using
exposure? ROI as a performance measure?
A. A U.S. company's foreign subsidiary in Japan has A. It may be misleading when cash flows are not
a receivable denominated in Yen. evenly distributed over time.
B. A Japanese company's foreign subsidiary in the B. It does not consider the profit generated by a
U.S. has a receivable denominated in Yen. project.
C. A U.S. company's foreign subsidiary in Japan has C. It does not include a charge for cost of capital.
a payable denominated in Yen. D. It may lead to rejection of a positive NPV project. -
