Use AFP CTP Dumps To Succeed Instantly in CTP Exam [Q588-Q610]

Q588. The PRIMARY difference between money market instruments and capital market instruments is that capital market instruments are securities that are:

Q589. A company with high operating leverage reduces its average cost per unit by 20% as its sales volume increases by 40% annually. This an example oF.

Q590. Under which of the following circumstances is lengthening the disbursement mail float NOT a benefit to the disbursing company?

Q591. Which of the following statements are true about the use of different discount rates for different types of projects?
I. Low-risk, short-term projects may be evaluated by using a short-term opportunity cost.
II. High-risk projects may be evaluated by using a discount rate that is greater than the company’s normal opportunity cost.
III. A short-term investment (or borrowing) rate may be used as the company’s short-term discount rate.
IV. The use of a lower discount rate for riskier projects forces riskier projects to earn higher rates of return.

Q592. Which of the following statements is true about futures contracts?

Q593. A company in a distressed financial condition may choose to use which of the following services to entice suppliers to continue to sell to it on open terms?

Q594. Account analysis statements should be examined for which of the following reasons?
I. To verify volumes processed
II. To determine daily cash shortages
III. To verify the accuracy of bank service charges
IV.
To ensure that company-initiated transactions have occurred

Q595. What is the MOST appropriate rate used as the discount rate in calculating NPV?

Q596. An increasing number of multinational companies have adopted formal multilateral netting systems for which of the following reasons?

Q597. The treasurer at a U.S.-based manufacturing plant is developing a cash flow forecast for the next four weeks.
The treasurer has set a minimum cash balance target for the plant of $75,000 and the cash position in the beginning of week 1 is $28,000. Using the cash receipts and disbursements projections provided in the data set, what is the plant’s net investable balance at the end of week 4?

Q598. Which of the following objectives of treasury management refers to a company’s ability to meet current and future financial obligations in a timely, efficient, and cost-effective manner?

Q599. The U.S. Treasury unexpectedly announces a plan to issue $100 billion of U.S. Treasury bills. Which of the following would MOST LIKELY affect U.S. short-term bond prices and interest rates (all other factors stay constant)?

Q600. A decrease in the accounts receivable from one period to the next is considered to be:

Q601. A company with substantial fixed assets but low debt relative to asset value is likely to be:

Q602. When a subsidiary borrows money, the parent, sister subsidiary, or other entity is often used in order to:

Q603. What document serves as the basic account or service authorization, empowering a representative of a business to enter into agreements for financial services?

Q604. A dealer is selling securities to a client. What is the yield/price at which the dealer will sell?

Q605. When evaluating a FSP during the RFP process, a company should place a high value on a FSPs financial strength when the provider:

Q606. A pizza restaurant chain maintains separate accounts at bank branches near each of their 1,067 restaurants to handle the deposit of cash received. Early each morning, the company’s point-of-sale system electronically transmits collection totals from the previous day to its main computer. ACH debits are then initiated to concentrate the funds from the local accounts to the concentration account the following day. Recently, several of the ACH debits have been returned for insufficient funds because deposits weren’t being taken to the bank on a timely basis by the local employees. Without increasing staff at the restaurants, what could Treasury do to prevent this from happening and avoid overdrafts at the local banks?

Q607. Which of the following services allows a single account to be used by a company with multiple units?

Q608. To monitor financial institution service quality, a company would use all of the following measures EXCEPT:

Q609. The earnings allowance rate applied to collected balances is usually determined by which of the following rates?

Q610. In order to maintain internal control best practices, how often should an organization reconcile their investment statements?