Exactprep CTP Questions

Certified Treasury Professional Questions and Answers

Question 81

Which of the following is a source of short-term financing?

Bond issuance

Factoring of accounts receivable

Issuance of common stock

Retaining profits

Question 82

The combination of difference in condition (DIC) insurance and umbrella insurance:

transfers risk to a company’s captive insurance subsidiary.

replaces the coverage provided by basic property and liability insurance.

supplements the coverage provided by basic property and liability insurance.

provides payments to a company in the event it is unable to pursue a line of business due to an unforeseen event.

Question 83

A company has negotiated a credit facility with the following terms:

What is the annual interest rate on the line of credit?

6.0%

6.2%

9.0%

9.3%

Question 84

A company has negotiated a credit facility with the following terms:

What is the effective annual borrowing rate for the line of credit?

6.0%

6.2%

7.8%

9.3%