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Exam Code: CTP
Exam Name: Certified Treasury Professional
One year free update, No help, Full refund!
CTP Exam Cost Total Q&A: 932 Questions and Answers
Last Update: 2015-12-25

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NO.1 Company M operates a grocery distribution business on Main Street. As part of its business
continuity plan, Company M intends to purchase insurance to cover the facility lease for its Main
Street warehouse in the event it cannot operate for a period of time. What type of coverage should
Company M purchase?
A. Cost reimbursement insurance
B. Business interruption insurance
C. General liability insurance
D. Fiduciary insurance
Answer: B

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NO.2 A cash manager is determining the threshold over which cash concentrations will be done by
wire. An ACH transaction costs $0.50. A wire costs $12.00. Funds are available 2 days quicker by wire
and the opportunity cost of funds is 5%. What threshold should the cash
manager use?
A. $41,975
B. $43,800
C. $83,942
D. $87,600
Answer: A

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NO.3 Company A purchases materials on cash-before-delivery terms, while Company B uses paid-
on-production terms. Both companies are diligent with the protection of assets, but Company B has
concerns with respect to transfer of title of the materials. Company B is MOST LIKELY what type of
business?
A. Manufacturer
B. Retailer
C. Supplier
D. Wholesaler
Answer: A

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NO.4 A good credit rating has which of the following effects on debt?
I. Improved marketability
II. Decreased cost of funds
III. Decreased maturity
IV.
Increased dealer fees
A.I and IV
B.I and II
C.II and III
D.I, II, and III
Answer: B

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NO.5 The Fed can reduce the money supply by doing which of the following?
1.Increasing reserve requirements 2.Purchasing government securities 3.Increasing legal lending
limits 4.Selling government securities
A. 1 and 2
B. 1 and 4
C. 3 and 4
D. 2, 3, and 4
Answer: B

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NO.6 An investor concerned about taxes on dividend distributions will MOST LIKELY purchase stock
on which of the following dates?
A. Ex-dividend date
B. Record date
C. Declaration date
D. Payment date
Answer: A

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NO.7 Convertible securities consist of preferred stock anD.
A. treasury stock.
B. common stock.
C. bonds.
D. tracking stock.
Answer: C

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NO.8 What do MOST companies try to maintain due to the signaling effect and clientele effect?
A. A stable policy of retained earnings
B. A stable dividend policy
C. A consistent payment date
D. A dividend reinvestment plan
Answer: B

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Posted 2015/12/26 23:20:04  |  Category: AFP  |  Tag: CTP Exam PDFAFP