CTP Exam Questions

- (Topic 6) When investing in commercial paper, the investor's primary consideration should be which of the following?

- (Topic 6) Which of the following is a negotiable time draft?

- (Topic 6) Which of the following is a common method for assigning float on a check deposited to a non-US bank account?

- (Topic 6) A good credit rating has which of the following effects on debt?

- (Topic 6) The time between receipt of a mailed payment and the deposit of the payment in the payee's account is known as:

- (Topic 6) Which of the following instruments is sold at multiple price bid auctions?

- (Topic 6) A netting system can be used for all of the following EXCEPT:

- (Topic 6) Which of the following can be used for monitoring accounts receivables?

- (Topic 6) A cash manager should use which of the following techniques to measure the differences among cash flows with different timings and amounts?

- (Topic 6) Which of the following is responsible for liquidating the assets of failed financial institutions?

- (Topic 6) EXCEPT:

- (Topic 6) All of the following statements are true about adjustable-rate preferred stocks EXCEPT:

- (Topic 6) The time between when the payor mails the check and the payee receives available funds is known as:

- (Topic 6) Compared to debt, which of the following statements is true about a company issuing equity?

- (Topic 6) Which of the following statements is true about threshold concentration?

- (Topic 6) Insurance companies often use which of the following payment instruments?

- (Topic 7) The delay between the time a check is deposited and the time the company's account is credited with collected funds is known as:

- (Topic 7) All of the following are an EDI benefit EXCEPT:

- (Topic 7) The PRIMARY difference between defined benefit and defined contribution pension plans is whether the employee or the employer:

- (Topic 7) Which of the following is an example of a qualitative factor used in making credit decisions?

- (Topic 7) Which of the following credit terms would be MOST appropriate for a seasonal product that a manufacturer wants to sell to a retailer during the product's off-season?

- (Topic 7) Which of the following should be considered in the design of a collection system for a supermarket or retail store that does not offer proprietary credit cards?

- (Topic 7) On a company's financial statements, an increase in accounts receivable is reflected as

- (Topic 7) A company employs several short-term credit facilities at any one time to meet its liquidity needs and has consistently demonstrated the ability to service this debt as...

- (Topic 7) Refer to the following information about a company 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 margin...

- (Topic 7) Controlled disbursement notification times can be improved by which of the following?

- (Topic 7) 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 rat...

- (Topic 7) Which of the following is normally MORE significant for a corporation?

- (Topic 7) A company's overall cost of capital depends on the:

- (Topic 7) XYZ Company is a net borrower. Its cost of funds is 5.0%, its earnings credit rate is 3.0%, and the reserve requirement is 10%. Average service fees are $50,000 per mon...

- (Topic 7) Capital budgeting decisions are most commonly evaluated in terms of:

- (Topic 7) What type of insurance provides payments to an organization if it is unable to continue operations for some period due to an unforeseen event?

- (Topic 7) A bank's reserve requirement on demand deposits is 10%, and its earnings credit rate is 6%. If a company uses bank services amounting to $2,600 and has an excess of $55...

- (Topic 7) Which of the following is an example of using cash forecasting for liquidity management?

- (Topic 7) Advantages of writing checks locally on a centralized disbursing bank include all of the following EXCEPT which statement?

- (Topic 7) A company can dispute any check alterations within how many days after the bank statement has been sent?

- (Topic 7) Each of the following statements is true of both defined benefit plans and defined contribution plans EXCEPT:

- (Topic 7) Based on the above information, before making the major acquisition, several large institutional shareholders have asked management to consider all of the following

- (Topic 7) From a consumer's perspective, all of the following are true of both debit cards and credit cards EXCEPT:

- (Topic 7) An auto manufacturing plant in Michigan has high scheduled demand for its product. If the company does not have a long-term contract for raw materials, what type of exp...

- (Topic 7) Which of the following statements are true about the use of different discount rates for different types of projects?

- (Topic 7) The analysis of a company launching an initial public offering includes disclosure of information that may interest investors. It also includes confirmation that financ...

- (Topic 7) equity, it is making which of the following types of corporate financial decisions?

- (Topic 7) A currency swap is BEST described as an:

- (Topic 7) A company has average monthly sales of $2,700, of which 5 percent is on a cash basis, with the remaining sold on open account. The company's accounts receivable aging s...

- (Topic 7) Check MICR line information includes which of the following?

- (Topic 7) The PRIMARY difference between money market instruments and capital market instruments is that capital market instruments are securities that are:

- (Topic 7) A comprehensive payables service can do all of the following EXCEPT:

- (Topic 7) A United States company must remit a dollar royalty payment to its Japanese subsidiary. Cash settlement of the payment would typically be made by which of the following...

- (Topic 7) Which of the following are examples of covenants in loan agreements?