Free CTP Exam Braindumps (page: 4)

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A Chicago meat processor is concerned about the volatility of pork belly prices. Which of the following derivative products would be used to fix these prices within a given range?

  1. Collar
  2. Swap
  3. Cap
  4. Spot purchase

Answer(s): A



On the basis of the following exchange rates, which of the following currency amounts has the greatest value in U.S. dollars?

  1. C$750,000
  2. £850,000
  3. €900,000
  4. ¥5,000,000

Answer(s): B



Which of the following is a characteristic of giro systems used in countries in Europe?

  1. They operate through their postal systems.
  2. They are primarily used for company-to-company payments.
  3. They do not replace checks for the payment of bills.
  4. They do not allow the use of direct debits and credits.

Answer(s): A



Netting is used by which of the following as a cross-border payment technique?

  1. European giro providers
  2. Foreign subsidiaries of a company
  3. Counterparties in a letter of credit transaction
  4. TARGET participants

Answer(s): B






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