FIN 420 ACTUAL FINALS ANSWERS AND QUESTIONS
SET A+
✔✔Recent Treasury Technology - ✔✔- Application Program Interface (API)
- Robotic Process Automation (RPA)
- Machine Learning (ML)
- Artificial Intelligence (AI)
✔✔Successful Business Relationships require - ✔✔frequent communications, timely
feedback and fairly priced services/products.
✔✔Who determines the appropriate number of banking relationships that his\her firm
requires. - ✔✔The Treasurer
✔✔Account Resolutions - ✔✔This empowers a representative of a company to enter
into agreements for financial services
✔✔SLA (Service Level Agreement) - ✔✔concerned with services provided and the
measurement levels of service
✔✔Scorecards - ✔✔allow banks to understand how a corporate customer perceives the
quality and costs of services it receives.
✔✔Relationships are monitored with - ✔✔Score Cards and periodic relationship review
discussions.
✔✔Scorecard Sections - ✔✔- General Customer Service
- Relationship Manager
- Technical Reliability
- Account Analysis
- Bank Counterparty Risk Assessment
- Service Category Specific
, ✔✔How do Most Bank Relationships Start - ✔✔Prior to entering a FSP relationship a
RFP (Request for Proposal) may be undertaken by Treasury. Input is received by
Treasury from other areas
✔✔RFP Details - ✔✔- An Objective
- Business Requirements
- Project Plan
- Prices that will apply requested
✔✔Account Analysis - ✔✔Invoice for bank services and shows the process used to
determine the fees charged (not used outside US).
✔✔Earning Credit Calculation - ✔✔EC = CB x (1-RR) x ECR x (D/365)
- EC: Earnings credit
- CB: Average Collected Balances
- RR: Reserve requirements
- ECR: Earnings Credit Rate
D: # of Days in Month
✔✔Companies must choose between compensating banks with - ✔✔Fees or
Compensation
✔✔Elements of a Payment Process - ✔✔- Payment Instructions
- Payment Generation
- Clearing
- Settlement
✔✔Payment instructions - ✔✔info contained in an electronic transfer, card transaction,
or check
✔✔Payment Generation - ✔✔occurs when a payment instruction is entered into the
payment system
✔✔Clearing - ✔✔when banks use payment info to transfer $ between themselves
(directly or through a network)
✔✔Settlement - ✔✔occurs when the funds are available
✔✔Types of Payments - ✔✔- Checks
- Wires
- ACH
- Card Based Systems
- Emerging (mobile/virtual)
SET A+
✔✔Recent Treasury Technology - ✔✔- Application Program Interface (API)
- Robotic Process Automation (RPA)
- Machine Learning (ML)
- Artificial Intelligence (AI)
✔✔Successful Business Relationships require - ✔✔frequent communications, timely
feedback and fairly priced services/products.
✔✔Who determines the appropriate number of banking relationships that his\her firm
requires. - ✔✔The Treasurer
✔✔Account Resolutions - ✔✔This empowers a representative of a company to enter
into agreements for financial services
✔✔SLA (Service Level Agreement) - ✔✔concerned with services provided and the
measurement levels of service
✔✔Scorecards - ✔✔allow banks to understand how a corporate customer perceives the
quality and costs of services it receives.
✔✔Relationships are monitored with - ✔✔Score Cards and periodic relationship review
discussions.
✔✔Scorecard Sections - ✔✔- General Customer Service
- Relationship Manager
- Technical Reliability
- Account Analysis
- Bank Counterparty Risk Assessment
- Service Category Specific
, ✔✔How do Most Bank Relationships Start - ✔✔Prior to entering a FSP relationship a
RFP (Request for Proposal) may be undertaken by Treasury. Input is received by
Treasury from other areas
✔✔RFP Details - ✔✔- An Objective
- Business Requirements
- Project Plan
- Prices that will apply requested
✔✔Account Analysis - ✔✔Invoice for bank services and shows the process used to
determine the fees charged (not used outside US).
✔✔Earning Credit Calculation - ✔✔EC = CB x (1-RR) x ECR x (D/365)
- EC: Earnings credit
- CB: Average Collected Balances
- RR: Reserve requirements
- ECR: Earnings Credit Rate
D: # of Days in Month
✔✔Companies must choose between compensating banks with - ✔✔Fees or
Compensation
✔✔Elements of a Payment Process - ✔✔- Payment Instructions
- Payment Generation
- Clearing
- Settlement
✔✔Payment instructions - ✔✔info contained in an electronic transfer, card transaction,
or check
✔✔Payment Generation - ✔✔occurs when a payment instruction is entered into the
payment system
✔✔Clearing - ✔✔when banks use payment info to transfer $ between themselves
(directly or through a network)
✔✔Settlement - ✔✔occurs when the funds are available
✔✔Types of Payments - ✔✔- Checks
- Wires
- ACH
- Card Based Systems
- Emerging (mobile/virtual)
