CTP PRACTICE EXAM QUESTIONS AND ANSWERS 100%CORRECT.

CTP PRACTICE EXAM QUESTIONS AND ANSWERS 100%CORRECT. A $100,000 Treasury bill that matures in 182 days is currently selling at 9%. What is the bond equivalent yield on this security? (Rounded to the nearest hundredth of a percent) - ANSWER-9.57% .A $50 par value preferred stock pays a 7.50% annual dividend and the market currently requires a 9.00% percent return on the stock. What is the market price of the preferred stock? (Rounded to the nearest cent) - ANSWER-$41.67 .A bank hold harmless agreement against consequential damages from a misdirected wire transfer is an example of which of the following risk management techniques? - ANSWER-Contractual transfer .A best practice for internal controls is to include which of the following in an organization's investment policy? - ANSWER-Monthly reconciliation of investment statements and records to the general ledger .A biotech firm expects to use $600,000 of short-term borrowings, but it wants to establish a $1,000,000 credit line to ensure adequate reserve borrowing capacity. A lender offers the firm LIBOR plus a risk premium of 1.25%. The lender requires a commitment fee of 0.30% (30 basis points) on the unused portion of the line. LIBOR at the time of the loan is 2.25%. What is the annualized cost of the line? (rounded to the nearest tenth of a percent) - ANSWER-3.7% .A broker/dealer organization has a highly decentralized structure and clear policies and procedures for handling its customers' investments. When it comes to the organization's own investments it should have _____________. - ANSWER-A clearly defined and documented investment policy that emphasizes daily liquidity .A business wants to make Automated Clearing House (ACH) payments to a vendor, but the vendor refuses to use ACH unless the business submits each of the multiple invoices with the overall payment. This additional remittance information totals several records of up to 80 characters each. What sort of ACH payment format must the business use? - ANSWER-Corporate trade exchange (CTX) .A cash manager can use short-term forecasting to perform all of the following functions EXCEPT ___________. - ANSWER-Determining a company's collection history .A commodity buyer purchases a forward contract on coffee at $20 per bag, deliverable in 90 days. At the end of the 90 days, the open market price for coffee is $18 per bag. Which of the following actions should the buyer take? - ANSWER-Fulfill the contract, even though the buyer's long position lost value .A company can use which of the following to reduce financial exposures? I. Options II. Swaps III. Futures IV. Forwards - ANSWER-I, II, III and IV .A company decides to enter into a currency swap with a foreign company. The biggest risk in using such a swap is _____________. - ANSWER-Counterparty risk