QUESTION: 153

When using the Internet to access auction markets, companies may use certificate authorities to reduce their exposure to which of the following types of risk?

Credit
Valuation
Counterparty
Foreign exchange

Answer(s): C

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A large, nation-wide, retailer of plumbing fixtures is considering implementing ACH technology to improve its accounts receivable processing. Which of the following pre-authorized ACH transactions can the company use for this application?

ARC (Accounts Receivable Conversion)
CIE (Customer-Initiated Entry)
TEL (Telephone-Initiated Entry)
WEB (Internet-Initiated Entry)

Answer(s): B

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QUESTION: 155

A treasurer has been advised that his privately held company has just lost its largest customer, which will have a significant impact on earnings. The treasurer applies an aggressive working capital strategy. Presently, the yield curve is upward sloping. Given this information, the treasurer should ensure that the company has:

short-term non-committed lines.
short-term committed lines.
long-term non-committed lines.
long-term committed lines.

Answer(s): B

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QUESTION: 156

A treasurer is monitoring the yield curve through a service provider (like Reuters) and notices that it is moving from downward sloping to upward sloping. Based on this information, the treasurer should consider:

a commercial paper program.
a short-term borrowing facility.
interest rate collars.
a variable rate long term facility.

Answer(s): C

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Free AFP CTP Exam Questions (page: 40)

QUESTION: 153

QUESTION: 154

QUESTION: 155

QUESTION: 156

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