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Certified Treasury Professional Questions 211–215 (page: 44)

Updated On: 9-Feb-2026

The treasury manager of an auto-parts manufacturer has noticed that checks were sent to a foreign individual not on the approved vendor list. The payables manager has explained the payments but did not provide an invoice. The treasury manager did no further research and is later disciplined for:

  1. not reporting suspicious activity under the USA Patriot Act.
  2. not purchasing enough surety insurance.
  3. ignoring International Accounting Standards Board regulations.
  4. not implementing “Check 21.”

Answer(s): A



Which of the following would be considered insurance risk management services?

  1. Information-system consultants who upgrade loss controls
  2. External auditors who are hired to review financial statements
  3. IT professionals who ensure the treasury workstation properly converts FX
  4. Risk group that recommends the CFO approve SOX 404 compliance

Answer(s): A



What is the premium (price) for an oil contract, if the following conditions are present?

LIBOR rate of 5%
Out of the money cost of $3
Strike price is $4
In the money price of $1 Speculative premium of $2

  1. $3
  2. $5.25
  3. $7
  4. $7.35

Answer(s): C



An art history museum has recently finished renovating its new location. Before the move, the treasurer considers purchasing additional insurance to protect the art during transit. What form of additional insurance should the treasurer choose?

  1. Special multi-peril (SMP)
  2. Business interruption
  3. General liability
  4. Difference in conditions (DIC)

Answer(s): D



Securities sold by companies in an initial public offering (IPO) arE.

  1. a specific type of security sold by a public company for the first time.
  2. debt securities sold on the open market.
  3. public securities sold by a private company for the first time.
  4. securities sold by a private company to a limited number of investors.

Answer(s): C



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