CTP Exam Questions

- (Topic 2) When using the Internet to access auction markets, companies may use certificate authorities to reduce their exposure to which of the following types of risk?

- (Topic 2) The first step in the financial institution and financial services provider (FSP) selection process should be:

- (Topic 2) To strengthen outside auditor independence with regard to publicly held companies, the Sarbanes-Oxley Act requires that:

- (Topic 2) Under Section 404 of the Sarbanes-Oxley Act, management must state its responsibility for which of the following?

- (Topic 2) The rate of interest commercial banks charge their best credit rated customers is called the:

- (Topic 2) A shareholder right found in many corporate charters is the preemptive right which provides:

- (Topic 2) notices that it is moving from downward sloping to upward sloping. Based on this information, the treasurer should consider:

- (Topic 2) Underfunded pension obligations can be reduced by:

- (Topic 2) The goal of investor relations is to:

- (Topic 2) Company X, a US based multi-national, is exploring the option of locating a subsidiary in another country where there has been some historical risk of expropriation of...

- (Topic 2) A put option gives the holder the right to:

- (Topic 2) Company XYZ's government relations team has done a poor job in maintaining and nurturing its relationship with the local government. Because of new business ventures it...

- (Topic 2) A U.S. firm acquires a large U.K. manufacturer that generates high levels of cash flow in its local currency. The purchase is denominated in British pounds and is finan...

- (Topic 2) A company with a relatively poor credit rating borrows most of its funds with short maturities. They may want to change its exposure to interest rates to more correctly...

- (Topic 2) A multinational company may use which of the following to locate profits in subsidiaries in low-tax countries?

- (Topic 2) Under the standards of corporate governance adopted in 2002, an independent director must:

- (Topic 2) What does a company with a restrictive current asset investment strategy typically have?

- (Topic 2) One of the PRIMARY ways the Fed addresses systemic risk is by:

- (Topic 2) What is one chief advantage of issuing short-term securities in book-entry form?

- (Topic 2) In order to be defined as independent, a corporate director:

- (Topic 2) The key parties involved in a disaster recovery plan are generally classified as internal resources or external counterparties. When evaluating the risks of both partie...

- (Topic 2) Some treasury management systems are capable of initiating investment purchases and loan drawdowns automatically. The automating of these transactions is related to whi...

- (Topic 2) A large, nation-wide, retailer of plumbing fixtures is considering implementing ACH technology to improve its accounts receivable processing. Which of the following pre...

- (Topic 2) As an internal control tool, what does the matching of an invoice to the original purchase confirm?

- (Topic 2) A large U.S. company is planning to fund its Canadian subsidiary. Currently, the Canadian dollar is trading at CAD 1.25 per U.S. dollar, and the U.S. dollar is expected...

- (Topic 2) A publicly traded company is looking to fund its next project with the issuance of stock. The company's stock is primarily held by a small group of investors. The compa...

- (Topic 2) A company has large, ongoing short-term financing requirements with a maximum horizon of 250 days. It has a good credit rating and would like to use the least expensive...

- (Topic 2) The auditors of a private college are examining and auditing the college's financial statements. The statements are not presented in accordance with GAAP. What should t...

- (Topic 2) Which of the following payment types is at the greatest risk for fraud?

- (Topic 2) A U.S.-based electronics company that buys components from one of its foreign subsidiaries at a price above market is likely to:

- (Topic 2) An airline wants to lock in the price of the jet fuel it needs to purchase to satisfy the peak in- season demand for travel. The airline wants to manage its exposure to...

- (Topic 2) Which of the following is an important component of corporate governance?

- (Topic 2) The treasurer of a corporation is negotiating with one of his/her suppliers to allow the corporation to have 30 days to pay the supplier's invoices. The treasurer is ar...

- (Topic 2) The principal roles of corporate finance include which one of the following combination of functions?

- (Topic 2) A buyer receives an invoice from a supplier that offers discount terms of 3/10, net 60. What

- (Topic 2) A construction company just received a notification from its bank advising it of an altered dollar amount on a check. This notification is MOST LIKELY the result of:

- (Topic 2) A main characteristic of a company with regional offices using a centralized treasury function is:

- (Topic 2) Net working capital is defined as:

- (Topic 2) Company X has a rating that is below investment grade. The treasurer would prefer to use commercial paper for its short-term financing needs and has a commitment from i...

- (Topic 2) Which of the following statements BEST applies when evaluating fees in an RFP for bank services?

- (Topic 2) A treasury manager expects the price of a commodity to be highly volatile between the time of option purchase and exercise. Which option style would provide the greates...

- (Topic 2) Today's modern cash management systems would include which of the following?

- (Topic 2) The CFO of a growing company has decided that it would be prudent to insure the company against potential loss from dishonest acts of employees. The treasurer has been...

- (Topic 2) A company enters into a cash flow hedge to offset fluctuations in the value of foreign currency transactions occurring in two years. How should the company record the g...

- (Topic 2) One of the KEY risks associated with a company's use of financial institutions is the possibility that:

- (Topic 2) A seller's cost of capital is 12%. The average credit sale is $200,000, and the credit terms are 2/10, net 30. What is the present value of receiving full payment on da...

- (Topic 2) A treasury employee of Company XYZ is privy to financial reporting information yet to be released to the public. He knows that year-end earnings exceed last year's and...

- (Topic 2) A company has negotiated a credit facility with the following terms: $5,000,000 line of credit $3,000,000 average borrowing 30 basis point commitment fee on unused port...

- (Topic 2) Treasury policies should be approved by the:

- (Topic 2) Consolidation and specialization in the financial services industry have made financial institution and financial service provider selection a(n):