[Oct-2023] Certified Treasury Professional CTP Exam Practice Dumps [Q74-Q94]

QUESTION 74
The stock of a manufacturing company is priced so that its expected rate of return is below its required rate, as calculated by the Capital Asset Pricing Model (CAPM). Which of the following will occur in an efficient capital market?

QUESTION 75
Which of the following is a characteristic of giro systems used in countries in Europe?

QUESTION 76
Which of the following is an example of a qualitative factor used in making credit decisions?

QUESTION 77
Which of the following would be the most efficient method of reducing the number of cross-border payments between two units of a company?

QUESTION 78
An analyst at Davis Company uses the tax payment (TXP) banking convention for payment of state taxes. The analyst is preparing to pay $650,000 in taxes to the state where Davis Company is domiciled. What payment method will the analyst use to make the tax payment?

QUESTION 79
Exhibit:

What is the price to earnings ratio for Company ABC?

QUESTION 80
Which of the following cash concentration transfers is MOST LIKELY to result in a bank ledger overdraft?

QUESTION 81
Amalgamated Binding Consolidators takes 20 days to convert its raw materials to finished goods, 5 days to sell it, and 15 days to collect its credit sales. What is the company’s days receivable period?

QUESTION 82
An analyst is performing a lease versus buy analysis on a corporate jet. In the evaluation, a cost is relevant if it is:

QUESTION 83
An airline has entered into an agreement with its partners to offset receivables and payables for a specified period of time and to transmit or receive the difference via funds transfer at the end of the period. This is an example of:

QUESTION 84
A company is considering expanding to a three-site lockbox system from its current two-site system and has collected the following data:

The average collection float in the current system is:

QUESTION 85
Who has responsibility for final approval of treasury policies that have a significant impact on the organization?

QUESTION 86
In order to increase liquidity, ABC Motor Company bundled its customers’ installment payments and resold them to other investors. This is known as:

QUESTION 87
A small regional bank is losing market share in fiduciary services and the CEO has decided to scale back the trust department. Which of the following is considered a core service of a trust department?

QUESTION 88
Which of the following factors is NOT used by a cash manager to estimate a target compensating balance?

QUESTION 89
A portfolio manager would like to purchase U.S. 50 million of 10-year notes 3 months from now, but has heard news that the Federal Reserve will start a purchasing program of longer term treasuries that will include 10-year notes. The purchase program would likely cause a lowering of market interest rates. The manager would also like to avoid having to use margin on a daily basis. To remove the price risk that may be associated with the Federal Reserve purchasing program, the portfolio manager would MOST LIKELY enter into an:

QUESTION 90
Which of the following would be MOST suitable for a risk-averse electronics manufacturer that uses copper in many of its components?

QUESTION 91
Under an operating lease, possible benefits to the lessee include which of the following?
I. It requires no initial capital outlay.
II. It can be structured as an off-balance-sheet item.
III.
It can offer tax advantages.

QUESTION 92
Examples of traditional factors used in making a credit decision include which of the following?
I) Capacity
II) Capital
III) Compliance
IV) Character

QUESTION 93
Making payments through electronic payments networks can be a part of a treasury management system’s functionality, but it is subject to numerous constraints. Which of the following is a true statement of those constraints?

QUESTION 94
What activity should the Treasurer be most interested in if core treasury functions were to be compared within the industry or cross-industry for the purpose of identifying “best practices”?