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AFP CTP Exam
Certified Treasury Professional (Page 30 )

Updated On: 19-Jan-2026
Page 30 of 188
PDF with 1076 Questions

A company has a $2 million line of credit requiring a 5% compensating balance on usage. For the next year, the company projects a usage of 75% and a 10.375% interest rate. If the balance requirement is eliminated, by how many basis points will the company's effective interest rate be reduced?

  1. 18
  2. 30
  3. 55
  4. 74

Answer(s): C



A U.S. company that is expecting to receive a payment of C$1,000,000 purchased a put option of C$1,000,000 at a strike price of 1.75 C$/US$. Two days before the receipt of the payment, the spot rate is 1.85 C$/US$. To maximize its receipt of dollars, the company should do which of the following?

  1. Let the put option expire.
  2. Exercise its put option.
  3. Purchase a call option at 1.85.
  4. Purchase a spot contract at 1.85.

Answer(s): B



Which of the following would MOST LIKELY cause a decrease in a company's deposited checks availability?

  1. The depository bank institutes an earlier deposit deadline.
  2. The Federal Reserve implements same-day presentment.
  3. The company's lockbox bank implements weekend processing.
  4. The company encodes its own checks prior to deposit.

Answer(s): A



The PRIMARY objective of the AFP Account Analysis Standard is to help cash managers in which of the following areas?

  1. Automating account analysis reporting
  2. Unbundling bank charges
  3. Comparing costs among banks
  4. Setting target balances

Answer(s): C



A United States corporation purchases finished products from a German subsidiary and sells raw materials to the subsidiary several times in one month. To minimize foreign exchange transaction costs, the U.S. corporation's cash manager would MOST LIKELY use:

  1. bilateral netting.
  2. multilateral netting.
  3. forward options.
  4. pooling.

Answer(s): A



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