AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 751:

  Consolidation and specialization in the financial services industry have made financial institution and financial service provider selection a(n):

  A. more important decision process for a treasurer.
  B. less critical decision process for a treasurer.
  C. easier decision process for a treasurer.
  D. unimportant decision process for a treasurer.
  A. more important decision process for a treasurer.

• Question 752:

  An accounts payable manager has been mandated to accept all trade discount opportunities with an effective cost of discount above 25%. An invoice has been presented and approved for payment with terms of 3/5, net 30 days. What is the difference between the effective cost of discount offered, and the 25% rate set by the company?

  A. 14%
  B. 17%
  C. 20%
  D. 22%
  C. 20%

• Question 753:

  All of the following staff would be involved in the evaluation of an outsourced accounts payable solution EXCEPT:

  A. an internal auditor.
  B. a treasurer.
  C. a controller.
  D. a credit manager.
  D. a credit manager.

• Question 754:

  A multinational corporation with many FSPs requires a TMS that can display extensive and complex information in an effective manner. The corporation will be looking for a TMS with what functionality?

  A. Bank administration
  B. Dashboards
  C. Data integration
  D. Modularity
  B. Dashboards

• Question 755:

  Components of a field banking system include which of the following?

  I. Local bank

  II. Concentration bank

  III.

  Lockbox bank

  A. I only
  B. I and II only
  C. II and III only
  D. I, II, and III
  I. Local bank II. Concentration bank III. Lockbox bank
  B. I and II only

• Question 756:

  The exchange of a fixed interest rate cash flow for a floating interest rate cash flow with both interest rates in the same currency is an example of:

  A. a vanilla swap.
  B. an interest rate option.
  C. a basis-rate swap.
  D. an interest rate cap.
  A. a vanilla swap.

• Question 757:

  Some treasury management systems are capable of initiating investment purchases and loan drawdowns automatically. The automating of these transactions is related to which of the following treasury management functions?

  A. Payment management
  B. Liquidity management
  C. International trade management
  D. Capital budget management
  B. Liquidity management

• Question 758:

  A utility company is evaluating whether or not it should build a new plant. The process of reviewing the quantitative and qualitative factors are an example of which finance function?

  A. Capital budgeting
  B. Funding
  C. Financial planning
  D. Financial risk management
  A. Capital budgeting

• Question 759:

  A company offers credit terms of net 40, with an opportunity cost of 12% to a customer. What discount would have to be offered for the customer to be indifferent between paying on Day 40 and paying with the discount on Day 10?

  A. 1.0%
  B. 1.3%
  C. 1.6%
  D. 2.0%
  A. 1.0%

• Question 760:

  When a project has an initial cash outflow with cash inflows in subsequent years, what decision model is most applicable to use to evaluate the adequacy of the project?

  A. Monte Carlo
  B. Net present value
  C. Payback period
  D. Profitability index
  B. Net present value