CTP Exam Questions

- (Topic 4) A U.S. company decides to enter a new geographic market facing some dominant competitors, but projects sales growth of 40% in its first year due to its superior product...

- (Topic 4) The historic rate of return in the U.S. stock market is 8%. An investment portfolio has a mix of equity investments consisting of 40% A-Corp stock, 30% K-Corp stock, 10...

- (Topic 4) ABC Company, a publicly held U.S. multinational, owns several manufacturing plants in Latin America as well as several ships to transport its products globally. 60% of...

- (Topic 4) RAL Capital, a lean global financial service provider with revenues of $8 billion, has 10 regional offices located around the world. The RAL global trading groups are s...

- (Topic 4) An analyst at XYZ United is in charge of setting up the bank accounts. Fraud is a major concern due to the analyst's past experience with previous employers. The analys...

- (Topic 4) Company GRA has retail locations in remote areas of Montana. All banking options within the area, deemed a safe distance for making cash deposits, fail the counterparty...

- (Topic 4) CT Check Cashing routinely cashes payroll checks from JD Software. Someone presents a fraudulent check from JD Software to CT Check Cashing. The fraudulent item looks v...

- (Topic 4) The Treasurer of a company would like to establish an investment policy for the organization. One objective that should be included in the investment policy that would...

- (Topic 4) A treasurer decides to use notional pooling across wholly-owned multiple legal entities instead of wiring money between entity accounts. What specific section in the co...

- (Topic 4) Customers of an electronic trading firm are experiencing problems with the online trading platform. The company IT department discovered that although display of market...

- (Topic 4) A daily short-term forecast and variance analysis for LMN, Inc. is updated with relevant trends and actual data every Monday. Upon review, the Treasurer assessed that s...

- (Topic 4) A consumer is presented with payment options from a merchant when making a purchase. The consumer does not wish to share any information that could be later used in ide...

- (Topic 4) ABL Corporation is currently receiving a return of 10% on its investments. The bank is offering them an ECR of 15%. In order to get more value for their money ABL Corp....

- (Topic 4) RAL Industries is a manufacturing company that currently has locations in the United States and Latin America and has just completed an acquisition of a company located...

- (Topic 4) The Cash Manager of ABC Logistics, Inc. sets a daily cash position by noon. All departments have been given an 11 a.m. cut-off for presenting wire requests and 2 p.m. f...

- (Topic 4) The Treasurer at ABC Company currently uses an in-house company-processing lockbox center. The Treasurer has asked for an analysis to determine the major advantage of u...

- (Topic 4) An intern was hired by the Vice President of Accounts Payables to process the electronic payments that come through the bank. The intern is responsible for manually ent...

- (Topic 4) While revising the investment policy, the CFO performs a sensitivity analysis for the company's cash flow from investments, and identifies that increasing the maximum d...

- (Topic 4) Senior management at ABC Company plans to make a large capital expenditure to bolster its infrastructure exactly one year from now. Their primary concern is to preserve...

- (Topic 4) QRT Corporation uses exponential smoothing in its cash flow forecasting model. Five days are used to calculate the moving average forecast. If the value of the smoothin...

- (Topic 4) Which of the following is a component of a company's operating budget?

- (Topic 4) A U.S. corporation has annual revenues of $500 million and a corporate tax rate of 15%. It has subsidiaries in Country A and Country B. Subsidiary A has annual revenues...

- (Topic 4) PFA Corporation has used regression analysis based on historical data to determine the estimated portion of dollars of checks issued that will clear on any given busine...

- (Topic 4) MCA, Inc. upgraded the Treasury workstation that had been in place for two years and used data from that 24-month period to develop a new short-term forecast. A trend f...

- (Topic 4) Company XYZ is a high technology company. It is planning on acquiring another company in the high technology sector. Company XYZ does not have enough cash to acquire th...

- (Topic 4) Due to a loss of proprietary information held for clients, ABC Company has been named in a billion dollar lawsuit. It was determined that the loss of information was du...

- (Topic 4) Company ABC is experiencing an increase in bank fees due to its new international customers paying by check. Nearly 15% of all deposited items are international checks....

- (Topic 4) A hamburger patty supplier receives an order from ABC Burgers located in Minnesota. The supplier's policy is to bill upon fulfillment of the order and not at delivery....

- (Topic 5) The role of the depository bank in the check-clearing process is typically which of the following?

- (Topic 5) A company has asked its marketing, payroll and sales teams to collaborate in finding a solution that could augment its customer base, reduce payroll cost and increase s...

- (Topic 5) Financial risk management requires monitoring changes in which of the following?

- (Topic 5) Assuming a marginal tax rate of 36%, the taxable equivalent yield for an investment with a tax-exempt yield of 3% would bE.

- (Topic 5) A properly designed concentration system will potentially achieve which of the following results?

- (Topic 5) The treasury analyst for XYZ Corporation, a small retailer, is trying to forecast daily cash receipts being swept from the store depository accounts. The analyst has be...

- (Topic 5) Following the latest round of cost-cutting measures at ABC Corporation, the Treasury Department retained a headcount of 2 individuals. While the analyst was out sick, s...

- (Topic 5) Upon entering into an interest rate swap with a notional principal of $10,000,000, what is the initial amount of money the counterparties must exchange at the beginning...

- (Topic 5) A company agrees to pay ¥10,000,000 for a shipment from Japan. At the time the purchase order is placed the exchange rate is ¥168/US$. At the time of payment the exchan...

- (Topic 5) An assistant treasurer discovers that the CFO has been allowing other executives to exercise stock options during blackout periods. What will prevent the assistant trea...

- (Topic 5) A company has a $300,000 credit line of which $200,000 was the average amount outstanding for the year. The terms of the loan include a 1/2 of 1% commitment fee on the...

- (Topic 5) If a bank has a 10% reserve requirement, a 31-day month, and an earnings credit rate of 6.5%, which of the following is the approximate level of collected balances requ...

- (Topic 5) A company wants to gather daily balance reporting from its international subsidiaries' bank accounts. Which of the following systems would allow the company's bank to g...

- (Topic 5) When establishing a retail collection system that accepts consumer debit cards, a company must comply with which Federal Reserve regulation?

- (Topic 5) The relationship between debt and equity in a company's capital structure is called:

- (Topic 5) Which report is MOST LIKELY to be a current-day information report?

- (Topic 5) Which statement is true about private placements compared to public offerings?

- (Topic 5) Merchant MNO's sales for the day total $20,000. Fifty percent are credit cards, split average ticket is $50. Fees paid are 2% for Card Red and 2.5% for Card Blue and a...

- (Topic 5) A small import/export company, XYZ Company, has recently set up an account with a German firm. The contract between the companies states that XYZ is to be paid as soon...

- (Topic 5) A merchant, wanting to accept credit cards as payment method, will negotiate its fees with which of the following participants?

- (Topic 5) The use of debt to finance a company is called:

- (Topic 5) A U.S. government agency issues securities transfers using Fedwire Book-Entry Securities System. The first transfer request of the day in the amount of $1 million is se...