CTP Exam Questions

- (Topic 4) XYZ Company has a well established commercial paper (CP) program that they use to fund operations. The company is expanding by purchasing a new factory. The CFO is worr...

- (Topic 4) A customer buys a laptop for $850 and a CD for $13. Only items with sale price of $15 and greater are subject to value added tax (VAT). Assuming VAT of 8.5%, how much t...

- (Topic 4) An equity management company's Chief Financial Officer and Treasurer are evaluating their corporate investments and decide that they need to diversify their stock holdi...

- (Topic 4) XYZ Company is a publicly held manufacturing company that has decided to branch out into the international market. Five million dollars is needed to set up management a...

- (Topic 4) The CFO asks the Treasurer to create a new collections and concentration policy for their company. Following implementation of the policy, the company finds that report...

- (Topic 4) XYZ Company is a U.S. based company that has just issued some euro-denominated bonds in London. The bonds have a duration of 10 years at a rate of 3.5% with a par value...

- (Topic 4) A U.S. company's pension plan is managed by an investment management firm, headquartered outside the United States. The investment management firm outsources the accoun...

- (Topic 4) Company A has decided to purchase $3,000,000 of real estate from Company B. Company A will make the payment in 3 parts. The electronic payments will be sent from Bank A...

- (Topic 4) ABC Company offers a discount of 2/10, net 30 to its customers. ABC factored its accounts receivables with an outside vendor, under a "with recourse" arrangement. What...

- (Topic 4) A publicly held U.S. company has reported at the beginning of the year that it expects to increase shareholder value by 5%. The current expectations are for interest ra...

- (Topic 4) now, but has heard news that the Federal Reserve will start a purchasing program of longer term treasuries that will include 10-year notes. The purchase program would l...

- (Topic 4) A U.S. bank is actively trying to establish its operations in an emerging market country, but is not experiencing much success due to differences in the business cultur...

- (Topic 4) Which of the following is an example of a Eurobond?

- (Topic 4) During a company's cash flow analysis review it discovers that for every 10 new customers it gains, there is an increase of 2% in its float costs associated with the pa...

- (Topic 4) Company ABC is a restaurant chain that has enjoyed a surge in customers' dining with not much of a profitability increase in the last couple of years. Following a bad r...

- (Topic 4) A town has $25 million excess funds to invest long term. The town's investment policy requires it have full FDIC coverage on all investments. The town is willing to do...

- (Topic 4) The regional offices of ABC Company implemented a system that would allow the employees to pass information between regions in a secure fashion. This system requires th...

- (Topic 4) A merchant has a chargeback rate of 0.03% on average daily sales of $200,000. After switching to a new merchant acquirer that is a bank, the merchant sees the rate incr...

- (Topic 4) The Treasury Manager of a chain of department stores wants to develop a medium-term forecast. Management plans to open two new stores, and anticipates same-store sales...

- (Topic 4) A U.S. company wants to increase its cash turnover rate. It is finding that customers are not taking the offered discount terms of 3/15, net 35. What action might the c...

- (Topic 4) The Treasury Manager is forecasting sales based on historical data. It was observed that sales decreased sharply in December last year, normally a high sales volume per...

- (Topic 4) Which of the following capital budgeting methods ignores the time value of money?

- (Topic 4) A company has multiple wholly-owned subsidiaries that issue their own checks which are signed by head office staff. The company decides to move to electronic payments u...

- (Topic 4) A U.S. financial institution expects to grow at an exponential rate to become one of the largest companies in the country. It wants to hire the best talent in the indus...

- (Topic 4) XYZ Company is interested in issuing a bond to finance a new venture opportunity. The new venture is not expected to generate any cash flow for several years. Because o...

- (Topic 4) Company XYZ is a manufacturer of industrial equipment and has enjoyed a large percentage increase in profits from a small increase in revenues. Sales recently plummeted...

- (Topic 4) The School of Cash Management is dealing with a large bank that has been highly rated by Moody's and S&P. The School has a purchasing card program in place and is not u...

- (Topic 4) A treasury manager has $5 million that is not needed for 6 months. The treasury manager has decided to invest the funds in a liquid instrument, using the current portio...

- (Topic 4) PTC Corporation has determined that the threshold amount for initiating a wire transfer vs. an ACH payment for concentrating funds is $60,225. Wires cost $9.00 and save...

- (Topic 4) A company converts the expense processing for its sales team from reimbursement by check to providing the team with travel and entertainment cards. Immediately, the com...

- (Topic 4) Bank A is to pay Bank B $6,000,000 for 10 transactions that occurred throughout the day. Bank B is to pay Bank A $5,000,000 for 17 transactions that occurred throughout...

- (Topic 4) Based on the following information, how much money will XYZ Company owe the bank for monthly service charges after the earnings credit is applied? Average Ledger Balanc...

- (Topic 4) An analyst at Davis Company uses the tax payment (TXP) banking convention for payment of state taxes. The analyst is preparing to pay $650,000 in taxes to the state whe...

- (Topic 4) Which of the following is a KEY objective when instituting a collection and concentration policy?

- (Topic 4) XYZ Company experienced a substantial monetary loss due to over exposure to one particular sector of the stock market. The Treasurer had invested in companies tied to f...

- (Topic 4) A cash manager at a U.S. retailer forecasts a positive collected cash position for the end of the current day. The company has an overdraft facility at 10%, a separate...

- (Topic 4) What should a company's senior management consider in their payment policies to eliminate the co-mingling of funds for payables, receivables and foreign exchange transa...

- (Topic 4) Which institution or accord was approved in 2009 to strengthen the regulatory capital framework for banks by focusing on minimum capital requirements, supervisory revie...

- (Topic 4) The Treasurer of PJB Company is in charge of implementing new treasury management software. Without issuing any RFPs, the Treasurer hires a consulting company to instal...

- (Topic 4) Economists are forecasting a rise in gas prices within the next 3 months. Charged with the task of establishing a risk mitigation approach for the company, the CRO has...

- (Topic 4) XYZ Holdco has multiple credit facilities with a bank under a borrowing agreement that includes certain covenants. A fire has destroyed the manufacturing plant owned by...

- (Topic 4) A company has grown quickly in the euro zone market. It wants to maximize its excess cash. Which would be the BEST method of concentrating funds?

- (Topic 4) Over the past 3 years XYZ Company has expanded into multiple countries and significantly grown its banking relationships. The company now incurs significant expenses re...

- (Topic 4) West Coast Retail Shop has experienced reduced cash availability in its bank account since a new store manager was hired. The manager is responsible for manually prepar...

- (Topic 4) The Treasury Analyst at an investment firm has entered the company into a repurchase agreement with a counterparty at the direction of the Treasury Manager. The complia...

- (Topic 4) XYZ Company is a fairly new and high growth company funded by venture capital. Which of the following performance measures is it MOST LIKELY to use?

- (Topic 4) XYZ Company has decided to purchase a close competitor. This acquisition would make XYZ Company the 4th largest in its industry allowing it better purchasing power and...

- (Topic 4) Racklyn Paint Company, a new paint and construction company, has vendor payables of $2 million due periodically over the next 3 months; payroll payable to its crews of...

- (Topic 4) XYZ Corporation uses ABC Bank for their lending and treasury management. In addition, the bank serves as bond trustee for XYZ Corp. If XYZ Corp. becomes distressed, thi...

- (Topic 4) XYZ Corporation's current ledger balance of the controlled disbursement account is $1,286,500. Based on the information in the table, what will the corporation's availa...