AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 771:

  According to risk management experts, the BEST approach in managing operational risk is to:

  A. maintain a strong business continuity plan that can be used in disaster situations.
  B. document all company policies and procedures to ensure appropriate training for new staff.
  C. create a strong technological infrastructure that can identify security breaches as they occur.
  D. develop a corporate culture that promotes individual responsibility and supports educated risk taking.
  D. develop a corporate culture that promotes individual responsibility and supports educated risk taking.

• Question 772:

  A cash manager invests in Treasury bills for which of the following reasons?

  A. The interest earned is exempt from federal taxes.
  B. There is no price risk.
  C. They are extremely liquid.
  D. They offer the highest yield for overnight investing.
  C. They are extremely liquid.

• Question 773:

  A diversified industrial company operates multiple remote manufacturing facilities that manage local supplier relationships. The company draws on a single line of credit for all of its working capital needs. Which of the following types of disbursement systems would BEST meet this company's needs?

  A. Centralized check issuance drawn on a central disbursement bank
  B. Decentralized check issuance drawn on a local disbursement bank
  C. Decentralized check issuance drawn on a central disbursement bank
  D. Centralized check issuance drawn on a local disbursement bank
  C. Decentralized check issuance drawn on a central disbursement bank

• Question 774:

  ABL Corporation is currently receiving a return of 10% on its investments. The bank is offering them an ECR of 15%. In order to get more value for their money ABL Corp. has decided to take advantage of the higher ECR and use funds from its Money Market Accounts to cover bank service charges.

  

  If ABL already has an average ledger balance of $750,000, how much more do they need to deposit on their account to cover all $10,000 of monthly service charges?

  A. $136,111.11
  B. $736,111.11
  C. $811,111.11
  D. $886,111.11
  A. $136,111.11

• Question 775:

  Which of the following payment instruments is initiated by the payee rather than the payor?

  A. Travelers checks
  B. Pre-authorized drafts
  C. Government warrants
  D. Money orders
  B. Pre-authorized drafts

• Question 776:

  A company purchased merchandise that cost C$155,000 from a Canadian supplier and then resold the merchandise for US$135,000. What rate of exchange must the company have obtained to realize a gross profit of US$44,000 on this transaction?

  A. 0.3259 US$/C$
  B. 1.1500 US$/C$
  C. 0.5871 C$/US$
  D. 1.7033 C$/US$
  D. 1.7033 C$/US$

• Question 777:

  A globally diversified manufacturing company can manage its liquidity more effectively by:

  A. pooling cash of subsidiaries.
  B. centralizing bank accounts.
  C. reducing its international bank network.
  D. using repatriation strategies.
  A. pooling cash of subsidiaries.

• Question 778:

  Which of the following forms of payment is covered by Regulation CC?

  A. Cash
  B. Check
  C. Credit card
  D. Debit card
  B. Check

• Question 779:

  All of the following statements are true about adjustable-rate preferred stocks EXCEPT:

  A. they offer tax advantages to corporate investors.
  B. they have a guaranteed return of principal at maturity.
  C. their dividends are paid before common stock dividends.
  D. their dividend rate is reset periodically.
  B. they have a guaranteed return of principal at maturity.

• Question 780:

  The time between when the payor mails the check and the payee receives available funds is known as:

  A. mail float.
  B. processing float.
  C. availability float.
  D. collection float.
  D. collection float.