AFP Certification CTP Book

Certified Treasury Professional Questions and Answers

Question 133

Which of the following are examples of covenants in loan agreements?

I. Financial ratios

II. Corporate resolutions

III. Borrower limitations

IV. Borrower obligations

Options:

I and III

II and III

I, II, and IV

I, III, and IV

Question 134

A trader of ABC Bank executed and audited his own trades. Assigning these two functions to the same person introduced which one of the following risks to the bank?

Options:

Operational risk

Currency risk

Derivatives risk

Regulatory risk

Question 135

A bank employee programs an internal payment system to transfer half a cent of each transaction to her personal bank account. What type of risk does this behavior illustrate?

Options:

Surety risk

Payment risk

Fiduciary risk

Technology risk

Question 136

The PRIMARY difference between defined benefit and defined contribution pension plans is whether the employee or the employer:

Options:

receives the tax reduction benefits of the plan.

decides which mutual funds are included in the plan.

bears risk of a shortfall of the investment results in the plan.

hires investment managers for the plan.

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Certified Treasury Professional Questions and Answers

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