Free CTP Exam Questions - Easiest Way for Success

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Total 932 Questions | Updated On: Sep 12, 2024

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Question 1

A U.S. company has a secured committed line of credit of $5 million. The company successfully transmitted a $5.5 million wire transfer instruction out to the bank. The bank contacted the company and informed it that the wire transfer would not be processed. What is the MOST LIKELY reason the bank gave the company?

A : The company overdraft facility was sufficient.

B : The bank imposed a guidance line of credit on the account.

C : The company reached its maximum limit on the committed line.

D : The bank refused funding on the company’s discretionary line of credit.

Answer: B

Question 2

Which of the following situations is the best example of transaction exposure?

A : A U.S. headquartered firm consolidates their foreign subsidiary’s financial statements into their home currency

B : A company that purchases raw materials locally and sells its products in local markets recently encountered foreign competition.

C : A U.S. exporter sells merchandise to a French buyer and records a balance receivable with payment terms in euros due in three months

D : A multinational corporation uses balance sheet hedging to reduce net exposure of the parent company.

Answer: C

Question 3

Which of the following activities creates administrative costs associated with a concentration system?

A : Scheduling cash transfers

B : Monitoring short-term investments

C : Reviewing positive pay exception reports

D : Centralizing the check issuance process

Answer: A

Question 4

When using the Internet to access auction markets, companies may use certificate authorities to reduce their exposure to which of the following types of risk?

A : Credit

B : Valuation

C : Counterparty

D : Foreign exchange

Answer: C

Question 5

T-bill discount rate = 5.85%

T-bill face value = $100,000

Initial term = 90 days

If the U.S. Treasury was considering issuing a 91-day T-bill at the same time as this T-bill,

what discount rate would cause both instruments to have the same purchase price?

A : 5.71%

B : 5.79%

C : 5.87%

D : 5.92%

Answer: B

Page: 1 / 187

Total 932 Questions | Updated On: Sep 12, 2024

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