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CTP AFP Exam Lab Questions

Page: 4 / 81
Total 1076 questions

Certified Treasury Professional Questions and Answers

Question 13

Bank A is to pay Bank B $6,000,000 for 10 transactions that occurred throughout the day. Bank B is to pay Bank C $8,000,000 for 13 transactions that occurred throughout the day. Bank B is to pay Bank A $5,000,000 for 17 transactions that occurred throughout the same day. These banks operate using a gross settlement system. How many transactions will occur between these banks to settle the payments?

Options:

A.

2

B.

3

C.

30

D.

40

Question 14

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 preparing daily bank deposits, which generally include a large number of checks, for processing at a bank branch in the same shopping mall as the store. Which of the following should West Coast Retail Shop implement to improve the available balance in its bank account?

Options:

A.

A Point-of-Purchase check conversion process

B.

An Image Replacement Document conversion process

C.

Transit check clearing

D.

A direct exchange with local banks

Question 15

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 dollar value for bond purchases will improve returns by 10% on average, all other variables being equal. What issue will the CFO now need to address in the investment policy?

Options:

A.

Exception management

B.

Valuation of investments

C.

Internal and external controls

D.

Performance management and reporting

Question 16

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 significant impact on the financial condition of the company. Company ABC offers a retirement plan wherein the amount owed to the participants at retirement is based solely on the account balance at the time of withdrawal with participants often bearing the responsibility for managing the investments in their account. Which of the following BEST describes the above two retirement plans and which act governs them?

Options:

A.

403(b) and defined contribution plan; ERISA

B.

Defined benefit plan and defined contribution plan; ERISA

C.

Qualified and non-qualified plan; Pension Protection Act

D.

Defined benefit plan and defined contribution plan; Pension Protection Act

Page: 4 / 81
Total 1076 questions