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Changed CTP Exam Questions

Page: 51 / 81
Total 1076 questions

Certified Treasury Professional Questions and Answers

Question 201

In the event of bankruptcy and the subsequent liquidation of issuer's debt, in what order, from first to last, will the following be repaid?

1. Senior secured debt

2. Senior subordinated debt

3. Junior secured debt

4. Junior debentures

Options:

A.

1, 2, 3, 4

B.

1, 3, 2, 4

C.

2, 1, 3, 4

D.

2, 1, 4, 3

Question 202

LLZ Company manufacturers metal detectors in California at a cost of $9 per unit. The most expensive component to make is the sensor which goes in the finished product. The cost is $5 per sensor. Last month LLZ acquired a company in Mexico that makes the sensors for $1 per sensor. LLZ plans to move all sensor manufacturing operations to the factory in Mexico. What is the movement of this cost saving process called?

Options:

A.

Reengineering

B.

Offshoring

C.

Rationalizing

D.

Outsourcing

Question 203

A multidivisional domestic company with centralized treasury decision-making can potentially utilize intra-company lending to:

Options:

A.

reduce the overall liquidity of the company.

B.

establish individual subsidiary borrowing facilities.

C.

source debt in different currencies.

D.

lower the overall cost of short term funds.

Question 204

A globally diversified manufacturing company can manage its liquidity more effectively by:

Options:

A.

pooling cash of subsidiaries.

B.

centralizing bank accounts.

C.

reducing its international bank network.

D.

using repatriation strategies.

Page: 51 / 81
Total 1076 questions