PassCollection. IT certification exam collections provider, High pass rate

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1 PassCollection IT certification exam collections provider, High pass rate

2 Exam : CTP Title : Certified Treasury Professional Vendor : AFP Version : DEMO Get Latest & Valid CTP Exam's Question and Answers from 1 Passcollection.com. 1

3 NO.1 What do MOST companies try to maintain due to the signaling effect and clientele effect? A. A stable policy of retained earnings B. A stable dividend policy C. A consistent payment date D. A dividend reinvestment plan NO.2 The following information about a company is at the end of its fiscal year. The before-tax cost of long-term debt is 10% and the cost of equity is 12%. The marginal tax rate is 35%. The company's current ratio is: A B C D NO.3 Which section of the statement of cash flows includes items that represent the cash inflows and outflows related to the daily functions of a company? A. Cash flow from financing activities B. Cash flow from investing activities C. Change in cash balance D. Cash flow from operating activities Get Latest & Valid CTP Exam's Question and Answers from 2 Passcollection.com. 2

4 NO.4 Which of the following are examples of covenants in loan agreements? I.Financial ratios II.Corporate resolutions III.Borrower limitations IV.Borrower obligations A. I and III B. II and III C. I, II, and IV D. I, III, and IV NO.5 A small regional bank is losing market share in fiduciary services and the CEO has decided to scale back the trust department. Which of the following is considered a core service of a trust department? A. Paying agent for dividend and interest payments B. Monitoring compliance with audit procedures C. Providing consulting services in debt origination D. Processing drafts for collection. NO.6 The Fed can reduce the money supply by doing which of the following? 1.Increasing reserve requirements 2.Purchasing government securities 3.Increasing legal lending limits 4.Selling government securities A. 1 and 2 B. 1 and 4 C. 3 and 4 D. 2, 3, and 4 NO.7 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. SWIFT B. CHIPS C. Giros D. EDI NO.8 If a company has $126 million in debt at an average cost of 7% and $234 million in equity at a cost of 11%, what is its weighted average cost of capital, assuming a marginal tax rate of 35% and a risk-adjusted rate of 13%? A. 8.7% B. 9.6% C. 10.0% D. 10.9% Get Latest & Valid CTP Exam's Question and Answers from 3 Passcollection.com. 3

5 NO.9 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.I and II B.II and III C.I, III, and IV D.I, II, and III NO.10 An art history museum has recently finished renovating its new location. Before the move, the treasurer considers purchasing additional insurance to protect the art during transit. What form of additional insurance should the treasurer choose? A. Special multi-peril (SMP) B. Business interruption C. General liability D. Difference in conditions (DIC) NO.11 Company RST is a seasonal retailer who has just completed its holiday season and is temporarily flush with cash. The treasurer has identified approximately $15 million of excess balances and is trying to determine what to do with the surplus cash. Cash forecasts show that the funds will be needed in approximately 30 days to replenish inventory. Which of the following plans should the treasurer implement immediately? A. Leave the funds in RST's bank account earning an ECR of 1%. B. Purchase low-risk, short-term investments yielding 2%. C. Prepay a $15 million, 5% loan maturing in 1 year. D. Buy a long-term, highly rated investment paying 2.10%. NO.12 The KEY decision in using CCD+ and CTX formats for B2B payments is: A. whether to keep the payment and remittance information together or separate. B. whether to use the Internet or an EDI spoke to transmit electronic payments. C. whether to use an EDI or a UN/EDIFACT protocol to transfer the value electronically. D. whether an evaluated receipts or paid-on-production technique is being used for the transfer. NO.13 A good credit rating has which of the following effects on debt? Get Latest & Valid CTP Exam's Question and Answers from 4 Passcollection.com. 4

6 I. Improved marketability II. Decreased cost of funds III. Decreased maturity IV. Increased dealer fees A.I and IV B.I and II C.II and III D.I, II, and III NO.14 An investor concerned about taxes on dividend distributions will MOST LIKELY purchase stock on which of the following dates? A. Ex-dividend date B. Record date C. Declaration date D. Payment date NO.15 Convertible securities consist of preferred stock and. A. treasury stock. B. common stock. C. bonds. D. tracking stock. Answer: C NO.16 Company A purchases materials on cash-before-delivery terms, while Company B uses paidon-production terms. Both companies are diligent with the protection of assets, but Company B has concerns with respect to transfer of title of the materials. Company B is MOST LIKELY what type of business? A. Manufacturer B. Retailer C. Supplier D. Wholesaler NO.17 Netting is used by which of the following as a cross-border payment technique? A. European giro providers B. Foreign subsidiaries of a company C. Counterparties in a letter of credit transaction D. TARGET participants Get Latest & Valid CTP Exam's Question and Answers from 5 Passcollection.com. 5

7 NO.18 Company M operates a grocery distribution business on Main Street. As part of its business continuity plan, Company M intends to purchase insurance to cover the facility lease for its Main Street warehouse in the event it cannot operate for a period of time. What type of coverage should Company M purchase? A. Cost reimbursement insurance B. Business interruption insurance C. General liability insurance D. Fiduciary insurance NO.19 A cash manager is determining the threshold over which cash concentrations will be done by wire. An ACH transaction costs $0.50. A wire costs $ Funds are available 2 days quicker by wire and the opportunity cost of funds is 5%. What threshold should the cash manager use? A. $41,975 B. $43,800 C. $83,942 D. $87,600 NO.20 The year-end income statement and balance sheet accounts for a company as of December 31, Year 1 are shown in the Exhibit. If no changes occurred in the current asset and current liability account balances from the beginning of the period, except for cash, what was the net cash flow from operations for Year 1? A. $350,000 B. $365,000 C. $390,000 D. $400,000 Get Latest & Valid CTP Exam's Question and Answers from 6 Passcollection.com. 6