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CTP Practice Questions

Certified Treasury Professional

Last Update 3 days ago
Total Questions : 1076

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Question # 21

A consumer is presented with payment options from a merchant when making a purchase. The consumer does not wish to share any information that could be later used in identity theft or fraud, while the merchant requires guaranteed payments within 24 hours with no NSFs or declined payments. Which of the following options would suit both the consumer and the merchant?

Options:

A.  

NACHA’s Secure Vault PaymentsTM

B.  

Credit card payment

C.  

Direct debit

D.  

E-check

Discussion 0
Question # 22

Based on the following information, what is the required collected balance to cover all monthly service charges?

Deposit Float$10,000

Reserve Requirement5%

Earnings Credit Rate15%

Monthly Service Charges$6,000

Days in month30

Options:

A.  

$308,222

B.  

$456,000

C.  

$486,667

D.  

$512,281

Discussion 0
Question # 23

A residential mortgage company that wants to collect monthly payments from customers electronically via the ACH would initiate:

Options:

A.  

PPD credits.

B.  

PPD debits.

C.  

CCD credits.

D.  

CCD debits.

Discussion 0
Question # 24

A public corporation may value a defined contribution plan highly because it:

Options:

A.  

allows the corporation to capture plan investment surpluses.

B.  

allows proxy voting in favor of management.

C.  

shifts investment shortfall risk to employees.

D.  

defines allowed investments within the plan.

Discussion 0
Question # 25

Which of the following instruments simplifies the paperwork connected with loans that have multiple advance features?

Options:

A.  

Master note

B.  

Banker's acceptance

C.  

Indenture agreement

D.  

Note purchase agreement

Discussion 0
Question # 26

A Chicago meat processor is concerned about the volatility of pork belly prices. Which of the following derivative products would be used to fix these prices within a given range?

Options:

A.  

Collar

B.  

Swap

C.  

Cap

D.  

Spot purchase

Discussion 0
Question # 27

What kind of budget forecasts the cost for investing activities?

Options:

A.  

Operating budget

B.  

Sales budget

C.  

Maintenance budget

D.  

Capital budget

Discussion 0
Question # 28

Which agency implements monetary policy through purchases and sales of treasury securities?

Options:

A.  

Federal Deposit Insurance Corporation

B.  

Fannie Mae

C.  

Office of the Comptroller of the Currency

D.  

Federal Reserve

Discussion 0
Question # 29

Company XYZ is not sure which direction interest rates are headed. Which of the following would be MOST suitable?

Options:

A.  

An interest rate cap

B.  

An interest rate floor

C.  

An interest rate swap

D.  

An interest rate collar

Discussion 0
Question # 30

A company hires an investment firm to fully underwrite a new stock issuance. Which of the parties carries the MOST risk?

Options:

A.  

The public

B.  

The company

C.  

The company’s bond holders

D.  

The investment firm

Discussion 0
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