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Certified Treasury Professional Questions 246–250 (page: 51)

Updated On: 9-Feb-2026

After several internal discussions about treasury management systems (TMSes), ABC Company has determined that it has no need for customization but that it does want a backup for high priority capabilities. The company wants to reduce its IT costs and resources but still have IT support with in-depth knowledge of the solutions available. These parameters will MOST LIKELY result in what kind of TMS?

  1. An ERP module TMS
  2. An integrated TMS
  3. A hosted ASP TMS
  4. Development of its own TMS

Answer(s): C



Simplifying upgrades and system restoration, access from multiple remote locations, and interfacing with multiple applications are all reasons to:

  1. replace workstations annually.
  2. use the internet.
  3. use 128-bit encryption.
  4. outsource IT.

Answer(s): B



Using a digital certificate when accessing a financial services provider is one way to reduce what kind of risk?

  1. Counterparty risk
  2. Process risk
  3. Reputational risk
  4. Compliance risk

Answer(s): A



Making payments through electronic payments networks can be a part of a treasury management system’s functionality, but it is subject to numerous constraints. Which of the following is a true statement of those constraints?

  1. The process is easy for the payee but very intensive manually for the payor.
  2. Negotiation of trade terms is required, but float terms are excluded.
  3. Remittance detail, whether a lot or a little, can be easily included with all payment forms.
  4. Collecting payment-routing details, and populating these into the software, is a significant task.

Answer(s): D



The board of directors announces an increase in its dividend from $0.11/share to $0.15/share. Over the next two quarters, management notices that its investor base has shifted to include a large percentage of pension funds and endowment funds. This is the result of:

  1. the clientele effect.
  2. the ex-dividend date.
  3. the dividend reinvestment plan.
  4. dividend capture.

Answer(s): A



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