CTP Exam Practice Questions and
answers correctly solved
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 - correct answer 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 - correct answer 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 - correct answer 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 - correct answer 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 - correct answer 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 - correct answer 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. - correct answer
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. - correct answer
which one of the following ties a user's private key to a user's public key
A. Digital signature
B. Digital certificate
C. digitized signature
D. digital Token - correct answer B
For a defined benefit plan,
AFP CTP : Practice Test
, A. plan assets equal plan liabilities. B. plan assets can be less than plan
liabilities.
C. plan assets are greater than plan equity.
D. plan assets always equal plan equity. - correct answer B
With respect to the Sarbanes-Oxley Act, a company may avoid additional
reporting requirements by:
A. issuing shares in an IPO.
B. providing an SSAE 16.
C. redeeming bond issues.
D. delisting its securities. - correct answer D
Which of the following would be expected to happen on the ex-dividend date?
A. The stock is sold with the dividend attached.
B. The stock price drops.
C. The stock's volume increases.
D. The stock's dividend is paid. - correct answer B
Which of the following is subject to transaction exposure?
answers correctly solved
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 - correct answer 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 - correct answer 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 - correct answer 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 - correct answer 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 - correct answer 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 - correct answer 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. - correct answer
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. - correct answer
which one of the following ties a user's private key to a user's public key
A. Digital signature
B. Digital certificate
C. digitized signature
D. digital Token - correct answer B
For a defined benefit plan,
AFP CTP : Practice Test
, A. plan assets equal plan liabilities. B. plan assets can be less than plan
liabilities.
C. plan assets are greater than plan equity.
D. plan assets always equal plan equity. - correct answer B
With respect to the Sarbanes-Oxley Act, a company may avoid additional
reporting requirements by:
A. issuing shares in an IPO.
B. providing an SSAE 16.
C. redeeming bond issues.
D. delisting its securities. - correct answer D
Which of the following would be expected to happen on the ex-dividend date?
A. The stock is sold with the dividend attached.
B. The stock price drops.
C. The stock's volume increases.
D. The stock's dividend is paid. - correct answer B
Which of the following is subject to transaction exposure?
