Latest [Nov 18, 2021] AFP CTP Exam Practice Test To Gain Brilliante Result
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NEW QUESTION 241
Which of the following is NOT a method multinational companies (MNC) use to repatriate capital?
- A. Management fees
- B. Internal factoring
- C. Dividends
- D. Transfer pricing
Answer: B
NEW QUESTION 242
The amount of the discount required to renegotiate credit terms in EDI depends on which two of the following?
I.Present value impact of the timing change II.Credit risks involved
III.Revolving credit agreements
IV.Transaction costs savings
- A. I and II
- B. I and IV
- C. II and III
- D. III and IV
Answer: B
NEW QUESTION 243
A U.S. bank regularly transmits international payments to European based XYZ Bank. The payments flow through an intermediary bank. Recently regulators audited the intermediary bank and discovered the bank may be unknowingly facilitating illegal activities. What payment method was MOST LIKELY used?
- A. Semi repetitive wires
- B. Cover payments
- C. Drawdown wires
- D. CHIPS payments
Answer: B
NEW QUESTION 244
Which of the following is NOT a short-term cash forecasting technique?
- A. Accounts receivable balance pattern forecast
- B. Distribution forecast
- C. Receipts and disbursements forecast
- D. Income statement forecast
Answer: D
NEW QUESTION 245
A U.S. company that is expecting to receive a payment of C$1,000,000 purchased a put option of C$1,000,000 at a strike price of 1.75 C$/US$. Two days before the receipt of the payment, the spot rate is 1.85 C$/US$. To maximize its receipt of dollars, the company should do which of the following?
- A. Purchase a call option at 1.85.
- B. Exercise its put option.
- C. Let the put option expire.
- D. Purchase a spot contract at 1.85.
Answer: B
NEW QUESTION 246
Which of the following would be expected to happen on the ex-dividend date?
- A. The stock's volume increases.
- B. The stock is sold with the dividend attached.
- C. The stock price drops.
- D. The stock's dividend is paid.
Answer: C
NEW QUESTION 247
Which of the following factors will allow a company to decrease the amount of collected balances required to compensate its bank for services?
- A. An increase in the bank's reserve requirement
- B. An increase in FDIC insurance charges
- C. A carry-over of a prior period's deficient balance
- D. An increase in the bank's earnings credit rate
Answer: D
NEW QUESTION 248
A banker's acceptance can be described as all of the following EXCEPT:
- A. a liability of the accepting bank.
- B. a sight draft.
- C. an easily marketable instrument.
- D. a discount instrument.
Answer: B
NEW QUESTION 249
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?
- A. NACHA's Secure Vault PaymentsTM
- B. Credit card payment
- C. E-check
- D. Direct debit
Answer: A
NEW QUESTION 250
Which of the following would be MOST suitable for a risk-averse electronics manufacturer that uses copper in many of its components?
- A. A short position in copper futures
- B. A put option on copper futures
- C. A costless collar using options on copper futures
- D. A floor option on copper futures
Answer: C
NEW QUESTION 251
Treasury management systems help cash managers do which of the following?
I) Reduce borrowing expenses
II) Initiate transfers
III) Determine cash position
IV) Obtain account balances
- A. I, II, III, and IV
- B. I and IV
- C. II and III
- D. I, III, and IV
Answer: A
NEW QUESTION 252
Given the above information,
if the risk manager adds a tank at its second facility, what loss control technique is being used?
- A. Limiting contractual acceptance of risk
- B. Catastrophic loss control
- C. Exposure avoidance
- D. Separation of exposures
Answer: D
NEW QUESTION 253
Which of the following could be considered a weakness of a forecast derived by regression analysis?
- A. Seasonality cannot be incorporated into the forecast.
- B. More than one factor may affect the event being measured.
- C. A large amount of data is required.
- D. It is only valid for long-term forecasting.
Answer: C
NEW QUESTION 254
Company XYZ has stable cash flows and sizable assets. The board of directors compared its WACC with its own industry's averages and determined that it may be at a competitive disadvantage. In order to become more competitive, what action will XYZ MOST LIKELY take?
- A. Issue more common shares and retire debt.
- B. Issue new debt and repurchase common shares.
- C. Issue preferred shares with convertible warrants.
- D. Reduce the dividend for a few quarters.
Answer: B
NEW QUESTION 255
A company that has facilities in different states and wants to control funding and facilitate check cashing would use which of the following?
- A. Bank cashier's checks
- B. Multiple drawee checks
- C. Controlled disbursements
- D. Staggered funding
Answer: B
NEW QUESTION 256
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