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Certified Treasury Professional Questions and Answers

Question 57

A company has $75 million in adjustable-rate debt, $25 million in fixed-rate debt, and $50 million in accounts receivable. If the company is concerned that interest rates will rise, which of the following would be the BEST interest rate derivative?

Options:

An interest rate floor

An interest rate collar

A forward rate agreement

An interest rate cap

Question 58

Company A anticipates the following cash inflows and outflows for the next three months:

If the company's treasurer is preparing a cash-flow projection for Month 2, and he is focusing purely on items that can be projected with a fair degree of certainty, what will the net projection be?

Options:

($119,000)

($104,000)

$131,000

$146,000

Question 59

Which of the following is an example of using cash forecasting for liquidity management?

Options:

Establishing an accounts receivable collection schedule

Scheduling investment maturities

Assessing the degree of foreign currency exposure

Determining a company's target capital structure

Question 60

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

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Certified Treasury Professional Questions and Answers

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CompTIA

Fortinet

Microsoft

Salesforce