CTP Exam Questions

- (Topic 6) Capital budgeting is defined as the:

- (Topic 6) An inverted yield curve occurs when which of the following is true?

- (Topic 6) The time from the deposit of a check in a bank account until the funds can be used by the payee is known as:

- (Topic 6) Which of the following contributes MOST to the marketability of a security?

- (Topic 6) A company receives proceeds of $1,119,274 from the sale of $1,150,000 worth of commercial paper. The paper is outstanding for 95 days. If a 360-day year is used, the co...

- (Topic 6) Which of the following is an advantage of a decentralized disbursement system?

- (Topic 6) Which of the following would be the most efficient method of reducing the number of cross- border payments between two units of a company?

- (Topic 6) A lockbox system is characterized by which of the following?

- (Topic 6) Which of the following cash concentration transfers is MOST LIKELY to result in a bank ledger overdraft?

- (Topic 6) Components of a field banking system include which of the following?

- (Topic 6) A high-yield, non-investment-grade security is commonly referred to as which of the following?

- (Topic 6) A company has a $2 million line of credit requiring a 5% compensating balance on usage. For the next year, the company projects a usage of 75% and a 10.375% interest ra...

- (Topic 6) The credit management function is responsible for:

- (Topic 6) The credit risk in the settlement of a Fedwire is borne by the:

- (Topic 6) Which of the following is an example of a company's internal data used for cash management?

- (Topic 6) Cash management services commonly used outside the United States include which of the following?

- (Topic 6) True statements about the open account method of trade payment include which of the following?

- (Topic 6) All of the following items may be found on an income statement EXCEPT:

- (Topic 6) The purpose of cash letters is to:

- (Topic 6) Which of the following are commonly used for financing accounts receivable?

- (Topic 6) What is the correct sequence of the following disbursement float events, from first to last step? 1. Check clears back to drawee bank account. 2. Check is encoded and e...

- (Topic 6) All of the following statements are true about loan participations EXCEPT:

- (Topic 6) Which of the following are primary objectives of cash forecasting?

- (Topic 6) A bank uses all of the following to determine whether a company's balances are sufficient to compensate for services EXCEPT:

- (Topic 6) A cash manager invests in Treasury bills for which of the following reasons?

- (Topic 6) Which of the following statements is true about lockbox network systems?

- (Topic 6) Which of the following investment instruments is a discount instrument?

- (Topic 6) A manufacturing company selling engines and other mechanical equipment, with invoices averaging $15,000, would use which of the following systems?

- (Topic 6) The term "collection float" is defined as the delay between the time the payor:

- (Topic 6) On a statement of cash flow, which of the following items are considered sources of cash?

- (Topic 6) Systemic risk can be caused by which of the following?

- (Topic 6) Examples of traditional factors used in making a credit decision include which of the following?

- (Topic 6) A banker's acceptance can be described as all of the following EXCEPT:

- (Topic 6) Representations and warranties in a loan agreement refer to which of the following?

- (Topic 6) A company that has a nationwide workforce may use which of the following methods for disbursing payroll to minimize the number of bank accounts?

- (Topic 6) To increase the money supply, the Federal Reserve would increase which of the following?

- (Topic 6) In a private label financing arrangement, the seller does which of the following?

- (Topic 6) The ACH system eliminates float because the:

- (Topic 6) U.S. dollar-denominated instruments issued by foreign banks through their domestic branches are known as:

- (Topic 6) A PRIMARY objective of the cash concentration function is to:

- (Topic 6) credit terms is MOST LIKELY to be offered to this company by its suppliers?

- (Topic 6) A convenience store chain would typically use which of the following types of collection systems?

- (Topic 6) In analyzing the costs for services among several banks, a cash manager should compare all of the following EXCEPT the:

- (Topic 6) Which of the following can be considered key responsibilities of daily cash management?

- (Topic 6) Which of the following will exempt commercial paper from SEC registration?

- (Topic 6) Which of the following functions is LEAST likely to be part of a cash manager's responsibilities?

- (Topic 6) When a subsidiary borrows money, the parent, sister subsidiary, or other entity is often used in order to:

- (Topic 6) A retail chain with 500 locations throughout the United States would use which of the following systems?

- (Topic 6) On the basis of the data above, what is the forecast for Thursday's cash receipts, under the exponential smoothing method?

- (Topic 6) An increasing number of multinational companies have adopted formal multilateral netting systems for which of the following reasons?