100% Pass Your CTP Exam Dumps at First Attempt with Pass4sures
Penetration testers simulate CTP exam PDF
NEW QUESTION 69
A Chicago meat processor is concerned about the volatility of pork belly prices. Which of the following derivative products would be used to fix these prices within a given range?
- A. Cap
- B. Spot purchase
- C. Collar
- D. Swap
Answer: C
NEW QUESTION 70
Which of the following is an advantage of a decentralized disbursement system?
- A. The ease of obtaining cash position information
- B. Reduced operating costs
- C. Local manager autonomy
- D. The elimination of idle cash balances at local banks
Answer: C
NEW QUESTION 71
A company has made all required payments on its revolving credit facility but its debt to tangible net worth ratio violates the facility's covenant. What has occurred?
- A. Payment default
- B. Transaction default
- C. Technical default
- D. Cross default
Answer: C
NEW QUESTION 72
A residential mortgage company that wants to collect monthly payments from customers electronically via the ACH would initiate:
- A. CCD debits.
- B. PPD credits.
- C. CCD credits.
- D. PPD debits.
Answer: D
NEW QUESTION 73
A company plans to double its dividend to its shareholders. Which of the following characteristics of the company would be MOST affected by this increase?
- A. Retained earnings
- B. Net income
- C. Short-term debt
- D. Long-term debt
Answer: A
NEW QUESTION 74
Company XYZ is not sure which direction interest rates are headed. Which of the following would be MOST suitable?
- A. An interest rate collar
- B. An interest rate cap
- C. An interest rate floor
- D. An interest rate swap
Answer: A
NEW QUESTION 75
A large multinational company recently implemented new processes to automate its treasury operations. If these changes were the direct result of comparing the company's practices with those of other companies, the activities could be considered an example of which of the following?
I. Liquidating
II. Re-engineering
III. Benchmarking
IV.
Forecasting
- A. II and III only
- B. I and III only
- C. I, II, and IV only
- D. I, II, and III only
Answer: A
NEW QUESTION 76
Money market funds are able to obtain very competitive trading terms because:
- A. of the economies of scale.
- B. invested funds are locked in for a specific period of time.
- C. the investment manager only purchases high yielding instruments.
- D. there is no diversification.
Answer: A
NEW QUESTION 77
The Treasurer of a company would like to establish an investment policy for the organization. One objective that should be included in the investment policy that would BEST allow the organization to limit its exposure to a particular market sector would be to:
- A. establish ratings requirements.
- B. set diversification requirements.
- C. develop an exposure horizon.
- D. perform a risk analysis.
Answer: B
NEW QUESTION 78
A company wishes to monitor and control office expenses incurred by its employees. Which of the following offers the BEST method of providing the employees freedom to choose different vendors while maximizing spending control?
- A. Stored value cards
- B. Travel cards
- C. Debit cards
- D. Purchasing cards
Answer: D
NEW QUESTION 79
Treasury policies and procedures should outline roles and responsibilities for which of the following activities?
- A. Determining how much earnings are to be paid out in dividends
- B. Monitoring compliance with trade payment terms
- C. Establishing and communicating a company's credit policies
- D. Initiating and approving internal and external transfers
Answer: D
NEW QUESTION 80
A company is concerned that investor dissatisfaction could lead to a rapid change in its board membership. To prevent this, which of the following strategies should the company employ?
- A. Give shareowners cumulative voting rights.
- B. Grant shareowners preemptive rights for new shares.
- C. Stagger the election of its directors.
- D. Allow shareowners to vote by proxy.
Answer: C
NEW QUESTION 81
Which of the following is an example of an intangible asset?
- A. Goodwill
- B. Depreciation
- C. Uncollected debt
- D. Prepaid expenses
Answer: A
NEW QUESTION 82
Which of the following is an example of a Eurobond?
- A. A bond that is denominated in euros, issued in France by a French company.
- B. A bond that is denominated in U.S. dollars, issued in a European market by a U.S. company.
- C. A bond that is denominated in Japanese Yen, issued in the U.K. by a U.S. company.
- D. A bond that is denominated in euros, issued in the U.S. by a German company.
Answer: C
NEW QUESTION 83
Which of the following is the MOST accurate statement regarding the passage of the Sarbanes-Oxley Act?
- A. It had little effect on corporate governance.
- B. It is the latest in a long line of corporate governance acts.
- C. It was the first corporate governance act in American history.
- D. It was a drastic change in the regulation of corporate governance.
Answer: D
NEW QUESTION 84
XYZ Company is a fairly new and high growth company funded by venture capital. Which of the following performance measures is it MOST LIKELY to use?
- A. Free cash flow
- B. Residual income
- C. Economic value added
- D. Net present value
Answer: A
NEW QUESTION 85
Which of the following is an example of a typical passive investment strategy?
- A. Riding the yield curve
- B. Using a dividend capture program
- C. Investing in overnight repos
- D. Executing a securities swap
Answer: C
NEW QUESTION 86
Advantages of writing checks locally on a centralized disbursing bank include all of the following EXCEPT which statement?
- A. It reduces idle balances.
- B. It decreases administrative costs.
- C. It provides opportunity for volume discounts on bank charges.
- D. It minimizes the number of banks.
Answer: B
NEW QUESTION 87
Under Section 404 of the Sarbanes-Oxley Act, management must state its responsibility for which of the following?
- A. Knowledge of the penalties for noncompliance
- B. Accuracy and completeness of financial statements
- C. Selection of auditors who are knowledgeable about Sarbanes-Oxley requirements
- D. Establishment and maintenance of adequate internal controls for financial reporting
Answer: D
NEW QUESTION 88
Which of the following types of payment transactions requires the authorization of both the initiating and the receiving party?
- A. A multiple drawee check
- B. A non-repetitive wire
- C. A depository transfer check
- D. A drawdown wire
Answer: D
NEW QUESTION 89
A company has $75 million in adjustable-rate debt, $25 million in fixed-rate debt, and $50 million in accounts receivable. If the company is concerned that interest rates will rise, which of the following would be the BEST interest rate derivative?
- A. An interest rate floor
- B. A forward rate agreement
- C. An interest rate collar
- D. An interest rate cap
Answer: D
NEW QUESTION 90
......
All CTP Dumps and Training Courses: https://www.pass4sures.top/Certified-Treasury-Professional/CTP-testking-braindumps.html
Help candidates to study and pass the Certified Treasury Professional Exams hassle-free: https://drive.google.com/open?id=1bWVTymANANl0h-RH2wfbETD9TCkx5Lqb