Treasury Management First Exam With Actual Correct Questions And Correctly Well Defined Answers.

A main characteristic of a company with regional offices using a centralized treasury function is: - correct answer High level of control "In order to be defined as independent, a corporate director: " - correct answer Cannot have a material relationship with the company "EML Inc., which has $600 million in outstanding debt, is preparing to issue commercial paper in excess of $100 million within the next six months. The new assistant treasurer has recently spent time getting to know the issuing and paying agent, the rating agency analyst, and the legal counsel, and has been following the financial markets. What is this is an example of? " - correct answer External collaboration The MOST common way that companies structure their treasury operations is as a(n): - correct answer Cost center Checks and balances with regards to Treasury activities are important because - correct answer Treasurers deal with the cash of the company in all aspects The Quantitative Easing done by the Federal Reserve duirng the great recession used which monetary policy tool? - correct answer Buying bonds by the Federal Open Market Operations of the Fed The Glass Steegal Act was basically repealed through which act of Congress? - correct answer Allowing Financial Holding Companies The Monetary Control Act of 1980 assisted in loosening the economy by - correct answer Reducing float in the payment system Breaking the buck refers to - correct answer Not permitting MMF to go below $1 NAV in most circumstances "In case of bankruptcy, what is the order of payment for the following: 1-Bankruptcy Trustee, 2-Senior Debt, 3- Common Shareholders, 4-Taxes owed, 5-Subordinated bond holders" - correct answer "A. 2, 1, 4, 5, 3" A retail brokerage firm is MOST like which one of the following types of financial institutions? - correct answer Investment banks The type of underwriting that is most risky to the company putting out the public offering - correct answer Best Efforts Underwriting All of these are attributes of Jumbo CDs except - correct answer CDs must be held to maturity What is the service a commercial bank traditionally does NOT make money from? - correct answer Underwriting security issued to the public "When utilizing a Factor to sell your receivables, all could be true except" - correct answer They must be sold without recourse back to the selling company Financing decisions in a budget are used to construct all of the following pro forma financial statement components EXCEPT: - correct answer Inventory Examples of fixed assets include which of the following? I. Inventory II. Treasury bills III. Forklift IV. Goodwill - correct answer III only The matching principle in regards to accrual accounting is - correct answer Recognize the expenses incurred to generate earned revenues "When it comes to Audit Opinions, firms would like " - correct answer Unqualified Which is NOT a source of cash for a company? - correct answer An increase in Accounts Receivables "MCA, Inc. upgraded the treasury workstation that had been in place for two years and used data from that 24-month period to develop a new short-term forecast. A trend factor was applied to controlled disbursements of 97% on a month-by-month basis and the variance to actual disbursements is less than 1%. Which of the following model validation techniques was utilized? - correct answer In-sample validation