2021 Valid CTP Real Exam Questions (Updated) 100% Dumps & Practice Exam
[UPDATED 2021] AFP CTP Questions Prepare with Free Demo of PDF
NEW QUESTION 194
During a company's cash flow analysis review it discovers that for every 10 new customers it gains, there is an increase of 2% in its float costs associated with the payment methods it offers. If the company pursues faster collection methods for payments, resulting in greater availability of surplus cash with a correlating decrease in the need to issue commercial paper, what risk will the company mitigate?
- A. Disbursement
- B. Settlement
- C. Liquidity
- D. Float
Answer: C
NEW QUESTION 195
A company wants to gather daily balance reporting from its international subsidiaries' bank accounts. Which of the following systems would allow the company's bank to gather the balance positions from the local banks?
- A. Giros
- B. SWIFT
- C. CHIPS
- D. EDI
Answer: B
NEW QUESTION 196
All of the following are differences between Fedwire and ACH EXCEPT:
- A. ACH transactions have delayed settlement.
- B. ACH transactions involve more consumer payments.
- C. ACH per item transaction costs are less.
- D. ACH items have no credit risk.
Answer: D
NEW QUESTION 197
JMW Company processes its consumer payments using a lockbox provider. On average 35% of its remittance advices contain encoding errors. JMW Company's cost for the lockbox provider to process these payments will be least impacted if it uses:
- A. retail lockbox.
- B. wholesale lockbox.
- C. hybrid lockbox.
- D. direct lockbox.
Answer: C
NEW QUESTION 198
A retail lockbox system is characterized by which of the following?
I) An emphasis on processing cost
II) Detailed information on discounts taken
III) Small-dollar amounts per invoice
IV) Multiple invoices per payment
- A. I, II, and III only
- B. I and III only
- C. I and II only
- D. II, III, and IV only
Answer: B
NEW QUESTION 199
EML Inc., which has $600 million in outstanding debt, is preparing to issue commercial paper in excess of $100 million within the next six months. The new assistant treasurer has recently spent time getting to know the issuing and paying agent, the rating agency analyst, and the legal counsel, and has been following the financial markets. What is this is an example of?
- A. Decentralized control
- B. Risk transfer
- C. Benchmarking with peers
- D. External collaboration
Answer: D
NEW QUESTION 200
If a company does not have cash available to make an interest payment on a bond, the company is experiencing difficulty with its:
- A. asset-liability management.
- B. profitability.
- C. liquidity management.
- D. capital structure.
Answer: C
NEW QUESTION 201
Which scenario provides the BEST example of an agency problem?
- A. An account manager approves a risky loan in order to meet a salary incentive.
- B. A CFO hires an independent auditor to review the company's balance sheet.
- C. A Treasurer accepts a free round of golf from a banker.
- D. A CEO is close friends with a competitor's CEO.
Answer: A
NEW QUESTION 202
Company XYZ sends an ACH debit file valued at $300,000 with an average item value of $1,000. The file settlement date is March 10. The file contains no duplicate items and items are split equally between corporate and consumer items. One percent of consumer items and 2% of corporate items were returned. What would be the final net settlement value for Company XYZ?
- A. $297,000
- B. $291,000
- C. $295,500
- D. $298,500
Answer: C
NEW QUESTION 203
A company wishes to monitor and control office expenses incurred by its employees. Which of the following offers the BEST method of providing the employees freedom to choose different vendors while maximizing spending control?
- A. Debit cards
- B. Travel cards
- C. Stored value cards
- D. Purchasing cards
Answer: D
NEW QUESTION 204
MCA, Inc. upgraded the Treasury workstation that had been in place for two years and used data from that 24-month period to develop a new short-term forecast. A trend factor was applied to controlled disbursements of 97% on a month-by-month basis and the variance to actual disbursements is less than 1%. Which of the following model validation techniques was utilized?
- A. Comparison validation
- B. In-sample validation
- C. Ongoing validation
- D. Documentation validation
Answer: B
NEW QUESTION 205
The ACH system eliminates float because the:
- A. transactions are initiated electronically.
- B. Fed charges back the cost of float.
- C. transactions are value-dated.
- D. receiving and originating institutions settle simultaneously.
Answer: D
NEW QUESTION 206
Which of the following is an opportunity cost of maintaining excess liquidity?
- A. Interest paid on outstanding debt
- B. Loss of time in securing credit
- C. Increase in interest earnings
- D. Decreased commitment fees
Answer: A
NEW QUESTION 207
MICR encoding errors may be detected by all of the following TMS modules EXCEPT:
- A. positive pay module.
- B. prior day reporting.
- C. reverse positive pay module.
- D. current day reporting.
Answer: D
NEW QUESTION 208
A new retail chain has decided to offer 3 payment methods: cash, cards and checks. It was
determined that card payments would be the biggest sales driver and projects have been scheduled accordingly. To be in line with this strategy, which of the following should be the priority?
- A. Acceptance of closed-loop credit cards
- B. Marketing announcement of card acceptance
- C. Becoming PCI DSS compliant
- D. Accounting set-up for card acceptance
Answer: C
NEW QUESTION 209
A company recently implemented a treasury code of conduct, which defined appropriate actions and business behaviors. The company developed policies and procedures that assigned duties to managers, and distributed the code to all treasury employees. The treasury group could have improved upon this implementation by doing which one of the following?
- A. Incorporating the code under its disaster recovery plan
- B. Having the code of conduct reviewed by the marketing department
- C. Providing training on the code to all employees
- D. Having the code certified under Sarbanes-Oxley Act requirements
Answer: C
NEW QUESTION 210
In a maturity matching financing strategy, which of the following is financed using short-term sources?
- A. Accounts payable
- B. Accounts receivable
- C. Buildings
- D. Equipment
Answer: B
NEW QUESTION 211
What is the MOST appropriate rate used as the discount rate in calculating NPV?
- A. IRR
- B. Internal transfer rate
- C. Marginal cost of capital
- D. Cost of debt
Answer: C
NEW QUESTION 212
An analyst is performing a lease versus buy analysis on a corporate jet. In the evaluation, a cost is relevant if it is:
- A. unlikely to be incurred.
- B. different in each scenario.
- C. considered a sunk cost.
- D. tied to inflation.
Answer: B
NEW QUESTION 213
On a statement of cash flow, which of the following items are considered sources of cash?
I. Increase in short-term investments II. Net income
III. Increase in accounts payable
IV.
Decrease in long-term debt
- A. II and IV only
- B. II and III only
- C. I and III only
- D. I, III, and IV only
Answer: B
NEW QUESTION 214
A company has made an investment of $30,000, which matures in 180 days and pays $800 in interest. Which of the following is the effective annual yield?
- A. 5.33%
- B. 5.40%
- C. 1.33%
- D. 1.31%
Answer: B
NEW QUESTION 215
A large, nation-wide, retailer of plumbing fixtures is considering implementing ACH technology to improve its accounts receivable processing. Which of the following pre-authorized ACH transactions can the company use for this application?
- A. WEB (Internet-Initiated Entry)
- B. CIE (Customer-Initiated Entry)
- C. TEL (Telephone-Initiated Entry)
- D. ARC (Accounts Receivable Conversion)
Answer: B
NEW QUESTION 216
XYZ Corporation uses ABC Bank for their lending and treasury management. In addition, the bank serves as bond trustee for XYZ Corp. If XYZ Corp. becomes distressed, this relationship could create a conflict of interest for the financial institution. What barrier prevents a financial institution from sharing confidential information between divisions?
- A. Sarbanes-Oxley controls
- B. Non-disclosure agreement
- C. Counterparty risk
- D. Chinese wall
Answer: D
NEW QUESTION 217
Which of the following statements is typically true about a net settlement system?
- A. An independent third party determines the settlement dates.
- B. Receivables and payments are continuously settled 1-to-1.
- C. It significantly reduces the total cost of transfers.
- D. Participants obtain improved payment terms from suppliers.
Answer: C
NEW QUESTION 218
Netting is used by which of the following as a cross-border payment technique?
- A. European giro providers
- B. TARGET participants
- C. Foreign subsidiaries of a company
- D. Counterparties in a letter of credit transaction
Answer: C
NEW QUESTION 219
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