CTP Test Notes & Afp Related CTP Exams - Certified Treasury Professional - Omgzlook

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CTP PDF DEMO:

QUESTION NO: 1
The Fed can reduce the money supply by doing which of the following?
1.Increasing reserve requirements 2.Purchasing government securities 3.Increasing legal lending limits 4.Selling government securities
A. 1 and 2
B. 1 and 4
C. 3 and 4
D. 2, 3, and 4
Answer: B

QUESTION NO: 2
A company wants to gather daily balance reporting from its international subsidiaries' bank accounts. Which of the following systems would allow the company's bank to gather the balance positions from the local banks?
A. SWIFT
B. CHIPS
C. Giros
D. EDI
Answer: A

QUESTION NO: 3
If a company has $126 million in debt at an average cost of 7% and $234 million in equity at a cost of 11%, what is its weighted average cost of capital, assuming a marginal tax rate of 35% and a risk-adjusted rate of 13%?
A. 8.7%
B. 9.6%
C. 10.0%
D. 10.9%
Answer: A

QUESTION NO: 4
With the advent of the euro, many U.S. companies have seen a reduction in their number of foreign currency transactions. As a result, these U.S. companies have benefited from which of the following?
I. Reduced FX transaction costs
II. Consolidated banking relationships
III. Simplified exchange risk management
IV.
Reduced need to monitor foreign political climates
A.I and II
B.II and III
C.I, III, and IV
D.I, II, and III
Answer: D

QUESTION NO: 5
A small regional bank is losing market share in fiduciary services and the CEO has decided to scale back the trust department. Which of the following is considered a core service of a trust department?
A. Paying agent for dividend and interest payments
B. Monitoring compliance with audit procedures
C. Providing consulting services in debt origination
D. Processing drafts for collection.
Answer: A

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Updated: May 27, 2022