AFP Certified Treasury Professional - CTP Exam Practice Test

In a private label financing arrangement, the seller does which of the following?

Underfunded pension obligations can be reduced by:

A company is interested in lowering its overall banking costs, managing netting, pooling, re-invoicing, and centralizing FX exposure at headquarters. Which of the following options will accomplish this?

An electronics manufacturer is attempting to protect itself from financial losses due to projected high warranty claims costs for one of its technically complex products. What kind of assessment should the company perform to determine the appropriate external insurance coverage that would protect it from the claims?

The lockbox receipt records for one 30-day month are provided below. The opportunity costs are 10%.

What is the annual cost of float rounded to the nearest dollar?

XYZ Inc. is a publicly traded company with revenues of $1B and an operating profit of 7.5%. The treasury organization consists of a treasurer and an assistant treasurer. The assistant treasurer is responsible for the creation and approval of all payments. The treasurer is responsible for compilation of the financial statements.
Under Section 404 of the Sarbanes-Oxley Act, what should be viewed as a concern?

A large retailer is preparing to accept credit cards and anticipates monthly credit card sales of $1,000,000. If the terms with the acquiring bank include bundled allocated fees of 6% and the retailer wishes to delay fee payment as long as possible, what should the retailer do?

A company is a net borrower and generally invests in short-term instruments consisting of money market funds, compensating balances, and commercial paper. The treasury manager wanted to increase returns for the organization and invested a large balance in bonds. The investment locked cash up for a longer period, causing additional draws on the revolver, and the bond values began to decline. What should the company have had to prevent this situation?

Which of the following is normally MORE significant for a corporation?

MICR encoding errors may be detected by all of the following TMS modules EXCEPT:

In an organization with personnel limitations, which of the following strategies should be considered to mitigate cash management system risk?

Which of the following is an opportunity cost of maintaining excess liquidity?

Some treasury management systems are capable of initiating investment purchases and loan drawdowns automatically. The automating of these transactions is related to which of the following treasury management functions?

Company ABC wants to consolidate bank balance reporting, do daily cash positioning, and make payments from a centralized platform for multiple banks. What vehicle should the company use?

From a consumer's perspective, all of the following are true of both debit cards and credit cards EXCEPT: