Advanced Treasury Operations Pre-Test | 120 Verified
Questions with 100% Correct Answers (2025 Edition)
Which of the following would help a treasurer sort through the vast data from a treasury management
system (TMS), starting at a high level and showing just the information relevant to the treasurer's
duties? - ✔✔Dashboard
A multinational company that uses regional treasury centers would best be described as using which of
the following types of international treasury management organization? - ✔✔Combined
The Federal Deposit Insurance Corporation (FDIC) can do all of the following EXCEPT - ✔✔act as the
lender of last resort to ailing banks.
The ISO 20022 Payment Standard is being used as the model to resolve what problem that was
historically encountered with electronic funds transfers (EFTs)? - ✔✔Inability to transmit remittance
information with the payment
Which of the following is the U.S. interpretation of a board of director's mandate to act in the best
interest of shareholders? - ✔✔Maximizing the company's stock price over the long term
Which of the following is an advantage of using regression analysis in a distribution forecast? - ✔✔It can
accurately predict changes in trend
Which of the following is a primary objective of treasury management? - ✔✔Financing
All of the following are primary reasons why treasury policies and procedures are needed EXCEPT -
✔✔to provide a framework for treasury strategy formulation that encourages educated risk taking and
development of innovative treasury solutions.
Which of the following are primary determinants of the mix of debt, equity and other forms of capital in
a company?
I. Operating risks
, II. Immediate and expected long-term financing needs
III. Current debt and equity costs relative to each other
IV. Senior management's risk taking attitudes - ✔✔I, II, III and IV
Which of the following is true of a leveraged buyout (LBO)? - ✔✔The purchased firm will have a high
debt ratio
All of the following are true of bond ratings EXCEPT - ✔✔Analysts use a precise mathematical formula to
determine a bond's rating.
Which of the following is true of using account analysis statements from banks? - ✔✔Standard formats
can resolve errors in volume and pricing.
A cash manager must decide whether to pay a $100,000 invoice on the 10th day after it is due and
receive a 2% discount or to forgo the discount and pay the invoice on the 40th day after it is due and in
the interim use the funds for a short-term investment. Approximately what yield must be generated on
the short-term investment to make it profitable not to take the discount? - ✔✔25%
Place the following credit card payment clearing process steps in order from first to last.
I. Hold placed on credit limi
tII. Credit card presented to merchant for purchase
III. Authorization granted
IV. Charges sent for clearing by merchant/transaction data routed to issuing bank
V. Authorization request
VI. Hold converted to charge/funds remitted through network to merchant - ✔✔II, V, I, III, IV, VI
What is most critical to ensure when your customer uses "auto-match" processes to perform a three-
way match prior to authorizing payment of an invoice? - ✔✔Clearly stated payment terms and
remittance instructions
Payment float encompasses which of the following? - ✔✔Accounts payable and disbursement float
Questions with 100% Correct Answers (2025 Edition)
Which of the following would help a treasurer sort through the vast data from a treasury management
system (TMS), starting at a high level and showing just the information relevant to the treasurer's
duties? - ✔✔Dashboard
A multinational company that uses regional treasury centers would best be described as using which of
the following types of international treasury management organization? - ✔✔Combined
The Federal Deposit Insurance Corporation (FDIC) can do all of the following EXCEPT - ✔✔act as the
lender of last resort to ailing banks.
The ISO 20022 Payment Standard is being used as the model to resolve what problem that was
historically encountered with electronic funds transfers (EFTs)? - ✔✔Inability to transmit remittance
information with the payment
Which of the following is the U.S. interpretation of a board of director's mandate to act in the best
interest of shareholders? - ✔✔Maximizing the company's stock price over the long term
Which of the following is an advantage of using regression analysis in a distribution forecast? - ✔✔It can
accurately predict changes in trend
Which of the following is a primary objective of treasury management? - ✔✔Financing
All of the following are primary reasons why treasury policies and procedures are needed EXCEPT -
✔✔to provide a framework for treasury strategy formulation that encourages educated risk taking and
development of innovative treasury solutions.
Which of the following are primary determinants of the mix of debt, equity and other forms of capital in
a company?
I. Operating risks
, II. Immediate and expected long-term financing needs
III. Current debt and equity costs relative to each other
IV. Senior management's risk taking attitudes - ✔✔I, II, III and IV
Which of the following is true of a leveraged buyout (LBO)? - ✔✔The purchased firm will have a high
debt ratio
All of the following are true of bond ratings EXCEPT - ✔✔Analysts use a precise mathematical formula to
determine a bond's rating.
Which of the following is true of using account analysis statements from banks? - ✔✔Standard formats
can resolve errors in volume and pricing.
A cash manager must decide whether to pay a $100,000 invoice on the 10th day after it is due and
receive a 2% discount or to forgo the discount and pay the invoice on the 40th day after it is due and in
the interim use the funds for a short-term investment. Approximately what yield must be generated on
the short-term investment to make it profitable not to take the discount? - ✔✔25%
Place the following credit card payment clearing process steps in order from first to last.
I. Hold placed on credit limi
tII. Credit card presented to merchant for purchase
III. Authorization granted
IV. Charges sent for clearing by merchant/transaction data routed to issuing bank
V. Authorization request
VI. Hold converted to charge/funds remitted through network to merchant - ✔✔II, V, I, III, IV, VI
What is most critical to ensure when your customer uses "auto-match" processes to perform a three-
way match prior to authorizing payment of an invoice? - ✔✔Clearly stated payment terms and
remittance instructions
Payment float encompasses which of the following? - ✔✔Accounts payable and disbursement float
