CTP Exam Questions

- (Topic 3) What is the reserve-requirements provision of the Federal Reserve Act of 1913 known as?

- (Topic 3) Kensley Biscuit Company Ltd. decides to invest £125,000 in new packaging equipment to help it keep up with increased demand. As a result of this investment, the company...

- (Topic 3) Which statement is true about credit unions?

- (Topic 3) Which of the following actions would the CFO of a Canadian multinational conglomerate MOST LIKELY take to repatriate profits from its international subsidiaries?

- (Topic 3) A nationwide retailer has been making EFT payments to its suppliers for several years. It following will support this initiative at the point-of-sale?

- (Topic 3) An employee earning $80,000 per year decides to begin contributing to his company's 401(k) plan effective January 1st. Assuming he is in the 25% tax bracket, contribute...

- (Topic 3) All of the following are examples of treasury management system transactions for liquidity management EXCEPT:

- (Topic 3) XYZ Inc. is a publicly traded company with revenues of $1B and an operating profit of 7.5%. The treasury organization consists of a treasurer and an assistant treasurer...

- (Topic 3) Treasury management systems and ERP systems allow companies to do all of the following EXCEPT:

- (Topic 3) BEA Company has determined its breakeven dollar amount for concentrating remote funds is $550.00. BEA Company has a daily earnings rate of 6% and gains one day of accel...

- (Topic 3) A company is experiencing the following long-term trend on a month-over-month basis: With all other income, expenses, long-term assets and liabilities remaining stable,...

- (Topic 3) An analyst is performing a lease versus buy analysis on a corporate jet. In the evaluation, a cost is relevant if it is:

- (Topic 3) Sign Company and Paint Company have a twenty-year business relationship, and they work together when sending and receiving payments. Sign Company also does a large amou...

- (Topic 3) A company which experiences increased business volumes but a minimal increase in profitability MOST LIKELY has:

- (Topic 3) Company XYZ has stable cash flows and sizable assets. The board of directors compared its WACC with its own industry's averages and determined that it may be at a compe...

- (Topic 3) Company XYZ had the following sales over the last 5 years: The company raised funds to invest in its operations. Considering the company's growth, it is interested in f...

- (Topic 3) What do MOST companies try to maintain due to the signaling effect and clientele effect?

- (Topic 3) premium?

- (Topic 3) A nationwide discount retailer is re-evaluating financing methods since the most-popular and most-expensive electronics "must-have" item for this year is set to ship fr...

- (Topic 3) ABC Ltd. uses a third party lockbox provider to collect and clear its paper receivables. A customer disputes the price charged for a binding machine and issues a check...

- (Topic 3) A large retailer is preparing to accept credit cards and anticipates monthly credit card sales of $1,000,000. If the terms with the acquiring bank include bundled alloc...

- (Topic 3) Simplifying upgrades and system restoration, access from multiple remote locations, and interfacing with multiple applications are all reasons to:

- (Topic 3) Loss exposures related to treasury management may include which of the following?

- (Topic 3) Recently LEW Utilities, a local utility company, began using the company processing center method to process customer payments. Prior to this change, it used its local...

- (Topic 3) Based on the above information, if the company uses the trade-off theory in considering its WACC, how will it finance its growth?

- (Topic 3) A company is filing for bankruptcy protection and is concerned about the welfare of its sizeable retiree population. Under ERISA, it is obligated to perform which of th...

- (Topic 3) A company with high operating leverage reduces its average cost per unit by 20% as its sales volume increases by 40% annually. This an example oF.

- (Topic 3) DGB Inc.'s CEO and founder retired shortly after the company went public two years ago. DGB Inc. has recently struggled, and the founder has agreed to return as an inde...

- (Topic 3) EML Inc., which has $600 million in outstanding debt, is preparing to issue commercial paper in excess of $100 million within the next six months. The new assistant tre...

- (Topic 3) A small for-profit, start-up company is designing a retirement plan with the goal of minimizing costs and operating income volatility while providing a qualified retire...

- (Topic 3) a security under the original terms be subject to?

- (Topic 3) Company ABC has undergone substantial system enhancements in order to take advantage of B2B efficiencies. To encourage its trading partners, ABC has offered a 1.5% disc...

- (Topic 4) 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 $12.00. Funds are availabl...

- (Topic 4) The Treasurer for XYZ Manufacturing, Inc. recently exchanged a portion of its euro holdings into U.S. dollars to purchase gas futures contracts. This was done in antici...

- (Topic 4) A portfolio manager purchases a floating rate mortgage backed security that would currently provide a 4% yield to the company. Since mortgage rates have been fluctuatin...

- (Topic 4) A newly hired Treasurer must establish the organizational structure of the treasury department for ABC Corporation which is a publicly traded multinational organization...

- (Topic 4) A company's Chief Financial Officer assigns a team reporting to the Treasurer to restructure the company's complex debt instruments and equipment leasing arrangements....

- (Topic 4) A North American service company has autonomous offices in different geographic regions each handling their own sales and accounts receivables deposits to local banks w...

- (Topic 4) The Treasury Manager of a privately held company is looking to finance new equipment that has a useful life of 5 years. What type of financing would the Treasury Manage...

- (Topic 4) Based on the following information, what is the required collected balance to cover all monthly service charges? Deposit Float$10,000 Reserve Requirement5% Earnings Cre...

- (Topic 4) XYZ Bank would like to conduct some foreign exchange transactions with JKL Bank. JKL isn't the most liquid and could have some credit risk. XYZ Bank should suggest whic...

- (Topic 4) An electronics manufacturer is attempting to protect itself from financial losses due to projected high warranty claims costs for one of its technically complex product...

- (Topic 4) When a buyer receives goods, but payment is not due to the supplier until some later date, this is defined as:

- (Topic 4) Company X has asked its banking partner for a recommendation on which type of bank account would be best if it has excess funds that are not required for daily cash man...

- (Topic 4) Company XYZ offers a retirement plan wherein the value of the plan's assets and liabilities is measured separately. The plan's funding and valuation can have a signific...

- (Topic 4) An individual has just inherited several million dollars and has decided to purchase the stock of a telecommunications company to diversify his portfolio. Before purcha...

- (Topic 4) Which of the following is an example of off-balance-sheet financing?

- (Topic 4) is not PCI DSS-compliant. Bank A processes 500,000 checks per month for Worldwide Industries. Worldwide Industries uses a third-party provider, Pay Point, for their cre...

- (Topic 4) Company ABC experienced a loss in the past when an employee in the treasury department was able to transfer $1.5 million to a personal account offshore. The company is...

- (Topic 4) XYZ Company has incurred a financially devastating event because of a hurricane at its offshore manufacturing plant. Due to the impact on liquidity, the company may not...