QUESTION: 77

The Federal Reserve can increase the money supply by:

increasing the reserve requirement.
increasing the discount rate.
selling government securities.
purchasing government securities.

Answer(s): D

QUESTION: 78

A company transmits a payment file of ACH and Fedwire vendor payments to its financial institution to execute. Which article of the Uniform Commercial Code governs these payments?

Article 3
Article 4
Article 4A
Article 5

Answer(s): C

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QUESTION: 79

A U.S. exporter sells goods to a foreign buyer in U.S. dollars and wants to guarantee that payment is made by the buyer. The exporter would MOST LIKELY require a(n):

bankers’ acceptance.
documentary collection.
letter of credit.
open account.

Answer(s): C

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QUESTION: 80

A lender is evaluating the creditworthiness of a company that has high levels of operating leverage. In determining the debt capacity of the company, the bank would MOST LIKELY prefer a:

high total liabilities to total assets ratio.
high debt to tangible net worth ratio.
low long-term debt to capital ratio.
low times interest earned ratio.

Answer(s): C

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Free CTP Exam Braindumps (page: 21)

QUESTION: 77

QUESTION: 78

QUESTION: 79

QUESTION: 80

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