CTP CHAPTER QUESTIONS 1-4
QUESTIONS AND VERIFIED
ANSWERS; GET IT 100% ACCURATE
A bank customer makes a deposit of $10,000 on Monday
morning in an account with a balance of $5,000. The bank
has one-day availability. What is the deposit float on
Monday and what is the ledger balance on Monday? -
correct answer- $10,000 and $15,000
A bank has its headquarters located in the United States
but also operates in a number of other countries. What
services can it can offer at each location? - correct
answer- The bank can offer a set of services that
differ to conform with each country's guidelines.
A demand for payment that is payable upon presentment
if accompanied by documents verifying that terms of the
transaction have been met is called a _____________. -
correct answer- sight draft
,A goal of the Single Euro Payments Area (SEPA) is to
incentivize what? - correct answer- Use of
electronic payment instruments
A net settlement system between financial institutions
bears which of the following risks? - correct
answer- Electronic debits may be reversible
A state-chartered bank who is part of the federal reserve
system would be supervised by which federal
governmental entity? - correct answer- The
Board of Governors
All of the following are clearing systems in the United
States EXCEPT - correct answer- SWIFT
All of the following statements are true of the USA
PATRIOT Act EXCEPT - correct answer- It
prohibits U.S. banks from maintaining, either directly or
indirectly, correspondent accounts for any foreign banks.
, As a result of the Credit Card Accountability Responsibility
and Disclosure Act of 2009 (Credit CARD Act), Regulation Z
prohibits which of the following? - correct answer-
Increases in a rate that applies to an existing credit card
balance
Bondholders' have the right to initiate this process but
rarely ever do so because of the potential for significant
legal ramifications? - correct answer-
Involuntary bankruptcy
How do "self-settling" cash payment systems compare to
other types of payments? - correct answer-
Higher process costs
If a firm takes advantage of asset-based lending provided
by a financial institution, what could happen if the
inventory used as collateral is a valuable but volatile
commodity? - correct answer- Available credit
could shrink or grow rapidly
QUESTIONS AND VERIFIED
ANSWERS; GET IT 100% ACCURATE
A bank customer makes a deposit of $10,000 on Monday
morning in an account with a balance of $5,000. The bank
has one-day availability. What is the deposit float on
Monday and what is the ledger balance on Monday? -
correct answer- $10,000 and $15,000
A bank has its headquarters located in the United States
but also operates in a number of other countries. What
services can it can offer at each location? - correct
answer- The bank can offer a set of services that
differ to conform with each country's guidelines.
A demand for payment that is payable upon presentment
if accompanied by documents verifying that terms of the
transaction have been met is called a _____________. -
correct answer- sight draft
,A goal of the Single Euro Payments Area (SEPA) is to
incentivize what? - correct answer- Use of
electronic payment instruments
A net settlement system between financial institutions
bears which of the following risks? - correct
answer- Electronic debits may be reversible
A state-chartered bank who is part of the federal reserve
system would be supervised by which federal
governmental entity? - correct answer- The
Board of Governors
All of the following are clearing systems in the United
States EXCEPT - correct answer- SWIFT
All of the following statements are true of the USA
PATRIOT Act EXCEPT - correct answer- It
prohibits U.S. banks from maintaining, either directly or
indirectly, correspondent accounts for any foreign banks.
, As a result of the Credit Card Accountability Responsibility
and Disclosure Act of 2009 (Credit CARD Act), Regulation Z
prohibits which of the following? - correct answer-
Increases in a rate that applies to an existing credit card
balance
Bondholders' have the right to initiate this process but
rarely ever do so because of the potential for significant
legal ramifications? - correct answer-
Involuntary bankruptcy
How do "self-settling" cash payment systems compare to
other types of payments? - correct answer-
Higher process costs
If a firm takes advantage of asset-based lending provided
by a financial institution, what could happen if the
inventory used as collateral is a valuable but volatile
commodity? - correct answer- Available credit
could shrink or grow rapidly
