CTP Exam Practice Questions 100 Questions with 100% Correct Answers Updated & Verified

CTP Exam Practice Questions 100 Questions with 100% Correct Answers Updated & Verified Over the past 3 years XYZ Company has expanded into multiple countries and significantly grown its banking relationships. The company now incurs significant expenses related to payment transaction costs and maintaining multiple bank connections. What should the company use to combat these rising costs. A. SWIFT network B. ACH Network C. CHIPS network D. TARGET 2 - A An Instrument that gives the right to buy a stated number of shares of common stock at a specified price is known as a. An equity warrant B. a Put Option C. A zero Coupon Bond D. A subordinate debenture - A An arrangement in which a borrower makes periodic payments to a seperate custodial account that is used to repay debt is known as a A. sinking fund B. Balloon payment C. Mortgage D. Zero-Coupon Bond - A Netting is used by which of the following as a cross-border payment technique? A. European giro providers B. Foreign subsidiaries of a company C. Counterparties in a letter of credit transaction D. TARGET participants - D Which of the following is a characteristic of giro systems used in countries in Europe? A. They Operate through their postal service B. They are primarily used for company-to-company payments C. they do not replace checks for the payment of bills D. They do not allow the use of direct debits and credits - A A company is based in the US and has an operating subsidiary in Germany. With a stable US dollar and depreciating Euro, the Company's cash manager may elect to: A. Pool excess funds int he US to offset Germany defecits B. Implement a dollar-based multilateral netting system C. Start lending receivables from the German subsidiary D. establish a multi currency account in the US - C A bank issues a letter of credit (L/C) and receives a request for payment under the L/C. The buyer notifies the issuing bank not to make payment because there is a dispute over the quality of the merchandise. However, the documents received fully comply with the terms of the L/C. Which of the following statements is true? A. The buyer may immediately return the merchandise and cancel the L/C. B. The bank may delay payment until reimbursed by the buyer. C. The bank may delay payment, provided the seller is notified of the dispute within three business days. D. The bank must make payment and is entitled to immediate reimbursement from the buyer. - The KEY decision in using CCD+ and CTX formats for B2B payments is: A. whether to keep the payment and remittance information together or separate. B. whether to use the Internet or an EDI spoke to transmit electronic payments. C. whether to use an EDI or a UN/EDIFACT protocol to transfer the value electronically. D. whether an evaluated receipts or paid-on-production technique is being used for the transfer. -