Free CTFA Exam Braindumps (page: 34)

Page 34 of 113

Time consumed in clearing a check through the banking system.

  1. Processing float
  2. Deposit float
  3. Collection float
  4. Availability float

Answer(s): D



Commercial paper is essentially:

  1. Another form of junk bond
  2. A short-term unsecured corporate IOU
  3. An intermediate-term corporate bond
  4. A certificate that may be exchanged for a share of common stock at a specified future date

Answer(s): B



Concentration banking:

  1. Increases idle balances
  2. Moves excess funds from a concentration bank to regional banks
  3. Is less important during periods of rising interest rates
  4. improves control over corporate cash

Answer(s): D



Which would be an appropriate investment for temporarily idle cash that will be used to pay quarterly dividends three months from now?

  1. A long-term Aaa-rated corporate bond with a current annual yield of 9.4 percent
  2. A 30-year Treasury bond with a current annual yield of 8.7 percent
  3. Ninety-day commercial paper with a current annual yield of 6.2 percent
  4. Common stock that has been appreciating in price 8 percent annually, on average, and paying a quarterly dividend that is the equivalent of a 5 percent annual yield

Answer(s): C



Page 34 of 113



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JUAN commented on June 28, 2023
aba questions to practice
UNITED STATES
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JUAN commented on June 28, 2023
aba questions to practice
UNITED STATES
upvote

Alo commented on November 12, 2018
we shall see, just downloaded. Will report back
Anonymous
upvote