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Consolidation and specialization in the financial services industry have made financial institution and financial service provider selection a(n):

  1. more important decision process for a treasurer.
  2. less critical decision process for a treasurer.
  3. easier decision process for a treasurer.
  4. unimportant decision process for a treasurer.

Answer(s): A



Which of the following statements BEST applies when evaluating fees in an RFP for bank services?

  1. Flexible credit terms are the most important consideration.
  2. Ability of financial institution to customize services is critical.
  3. A proforma account analysis statement captures all pricing and compensation detail.
  4. Accurate evaluation and comparison of the proforma account analysis statements are critical.

Answer(s): D



When evaluating candidates who have responded to an RFP for banking services, a highly leveraged company will probably apply a higher weighting to:

  1. flexible credit terms at competitive rates.
  2. the ability to customize services.
  3. the cost of switching providers.
  4. the adequacy of internal controls.

Answer(s): A



An evaluated receipts settlement would be MOST commonly used in an environment where:

  1. the cash conversion cycle is typically long.
  2. inventory turns over rapidly.
  3. volumes involved are small.
  4. the supplier sends an invoice.

Answer(s): B






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