CTP Exam Questions

- (Topic 2) Which of the following must be considered when designing the basic framework for a cash management system?

- (Topic 2) A call option is said to be "in-the-money" when the market price of the underlying security is:

- (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 the unused...

- (Topic 2) A company expects the U.S. dollar to depreciate in value compared to the British pound. The company will have a British pound payment to make in five months. The compan...

- (Topic 2) An accounts payable manager has been mandated to accept all trade discount opportunities with an effective cost of discount above 25%. An invoice has been presented and...

- (Topic 2) If the Federal Reserve Board increased the discount rate, you would expect:

- (Topic 2) Which of the following statements is typically true about a net settlement system?

- (Topic 2) The combination of difference in condition (DIC) insurance and umbrella insurance:

- (Topic 2) For a retirement plan to be qualified under ERISA, employer and employee contributions must be:

- (Topic 2) Banks often control information flow, records and assets, therefore it is critical that banks have:

- (Topic 2) The exchange of a fixed interest rate cash flow for a floating interest rate cash flow with both interest rates in the same currency is an example of:

- (Topic 2) A treasurer has been advised that his privately held company has just lost its largest customer, which will have a significant impact on earnings. The treasurer applies...

- (Topic 2) The MOST effective way to reduce the internal risk of technology as it relates to critical treasury functions is to:

- (Topic 2) A regional physicians' group is looking for an alternative to liability insurance to help protect against potential future liability claims. Which method would BEST ser...

- (Topic 2) When evaluating candidates who have responded to an RFP for banking services, a highly leveraged company will probably apply a higher weighting to:

- (Topic 2) The "agency problem" refers to:

- (Topic 2) A multinational company owns a United Kingdom subsidiary that has total assets equal to £1 million and intercompany loans due to the parent company equal to $1 million....

- (Topic 2) A multinational company (MNC) that operates a shared service center charges its foreign subsidiaries a management fee. This management fee may need to be:

- (Topic 2) Establishing the authority to open bank accounts is the responsibility of:

- (Topic 2) 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...

- (Topic 2) Which function involves evaluating alternative projects in relation to one another and in relation to the company's cost structure?

- (Topic 2) When evaluating a FSP during the RFP process, a company should place a high value on a FSPs financial strength when the provider:

- (Topic 2) The measurement of the significance of any loss exposure depends on:

- (Topic 2) When projecting the closing cash position, a cash manager must estimate which of the following?

- (Topic 2) To arrive at today's projected closing cash position, a cash manager starts with:

- (Topic 2) A company is looking for a way to finance their inventory. What is the BEST funding match?

- (Topic 2) A U.S. based multinational company is filing its U.S. tax return and notes that its U.K. subsidiary had pre-tax income equal to $1 million. The U.K. subsidiary paid an...

- (Topic 2) Disbursement float includes which of the following three float time intervals?

- (Topic 2) Which of the following could be considered a weakness of a forecast derived by regression analysis?

- (Topic 2) Which of the following is true when a company purchases goods using trade credit from suppliers?

- (Topic 2) Unrealized holding gains and losses arise when trading securities are:

- (Topic 2) As a result of the Sarbanes-Oxley Act, what new entity was established to sanction firms and individuals for audit violations?

- (Topic 2) A company is interested in lowering its overall banking costs, managing netting, pooling, re- invoicing, and centralizing FX exposure at headquarters. Which of the foll...

- (Topic 2) An evaluated receipts settlement would be MOST commonly used in an environment where:

- (Topic 2) If a corporation pays 70% of its current earnings to its stockholders in the form of cash dividends, the remaining 30% kept by the company will cause a(n):

- (Topic 2) A company's credit agreements or loan covenants may require:

- (Topic 2) Which of the following industries is MOST LIKELY to use a sophisticated cash concentration system with multiple banks as part of its cash management system?

- (Topic 3) Which of the following is a true statement about operating leverage?

- (Topic 3) Which of the following is true of return on investment (ROI)?

- (Topic 3) Company ABC needs external capital to finance a new product line. Its operating leverage is high, and its revolving credit agreement contains a ratings trigger. What wi...

- (Topic 3) A portfolio manager wishes to make a short-term investment. His investment policy requires that short-term investments be low risk and secured, have a fixed interest ra...

- (Topic 3) Which of the following is a characteristic of MOST mutual funds?

- (Topic 3) A company is looking to improve its collection rate of returned checks. If the company implements re-presented check entry (RCK) with its bank, it might see a reduction...

- (Topic 3) Usually, corporations receiving dividends from another corporation can exclude 70 percent of dividend payments from income for tax purposes as long as the stock is owne...

- (Topic 3) Which of the following is sought from a typical cash management services Request for Proposals (RFP)?

- (Topic 3) Which of the following is a purpose of the Check 21 Act?

- (Topic 3) Two months after a government overthrow, the new Minister of Industry and Culture took over the country's largest steel company and compensated the owners at 50% of boo...

- (Topic 3) What document serves as the basic account or service authorization, empowering a representative of a business to enter into agreements for financial services?

- (Topic 3) Company ABC has a concentrated investor base consisting primarily of large institutional shareholders. It would like to increase its number of smaller shareholders usin...

- (Topic 3) JKL Company has been successful in shortening the time associated with its mail float, processing float and availability float. JKL Company will experience which of the...