AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 541:

  Which of the following is an advantage of a centralized treasury function?

  A. Policy setting is determined by local offices.
  B. It optimizes risk and portfolio management.
  C. It reduces subsidiary interaction.
  D. Regional offices are responsible for disbursements.
  B. It optimizes risk and portfolio management.

• Question 542:

  When a company decides to discontinue a product line or divest of a subsidiary, it has made what type of corporate financial decision?

  A. Accounting
  B. Financing
  C. Funding
  D. Investment
  D. Investment

• Question 543:

  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
  C. Counterparty

• Question 544:

  Which of the following is NOT a method multinational companies (MNC) use to repatriate capital?

  A. Internal factoring
  B. Dividends
  C. Transfer pricing
  D. Management fees
  A. Internal factoring

• Question 545:

  A treasury project manager is tasked with improving day's sales outstanding. The company, a major retailer, sells 70% of its products to businesses. The project manager has convinced the Treasurer to proceed with purchasing $500,000 worth of equipment to convert the checks they receive to electronic form. What did the project manager overlook in making the decision?

  A. NACHA rules
  B. Credit card regulations
  C. Point-of-purchase check conversion
  D. Accounts receivable conversion
  A. NACHA rules

• Question 546:

  XYZ Company is interested in issuing a bond to finance a new venture opportunity. The new venture is not expected to generate any cash flow for several years. Because of this, XYZ Company would prefer to issue a bond that does not require interest payments. What type of bond should XYZ Company issue?

  A. Zero-coupon bond
  B. Municipal bond
  C. Tender option bond
  D. High-yield bond
  A. Zero-coupon bond

• Question 547:

  Which of the following statements is true about lockbox network systems?

  A. Local operating units receive funds over the counter and prepare deposits.
  B. A company processes and prepares its own deposits.
  C. A bank or third party receives, processes, and deposits currency primarily.
  D. Consolidated remittance data are generated from multiple collection points.
  D. Consolidated remittance data are generated from multiple collection points.

• Question 548:

  Which of the following correctly describes pooling as practiced in the European cash management environment?

  A. It can be facilitated between banks.
  B. The accounts of a parent company and its subsidiaries may be aggregated.
  C. It is accomplished through multicurrency accounts in one country.
  D. A company need not arrange credit facilities for negative balances.
  B. The accounts of a parent company and its subsidiaries may be aggregated.

• Question 549:

  After several internal discussions about treasury management systems (TMSes), ABC Company has determined that it has no need for customization but that it does want a backup for high priority capabilities. The company wants to reduce its IT costs and resources but still have IT support with in-depth knowledge of the solutions available. These parameters will MOST LIKELY result in what kind of TMS?

  A. An ERP module TMS
  B. An integrated TMS
  C. A hosted ASP TMS
  D. Development of its own TMS
  C. A hosted ASP TMS

• Question 550:

  Under the standards of corporate governance adopted in 2002, an independent director must:

  A. meet with management in regular executive sessions.
  B. have been with the organization for at least five years.
  C. have no material relationship with the organization.
  D. be one of three directors on the nominating committee.
  C. have no material relationship with the organization.