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Certified Treasury Professional Questions 391–395 (page: 80)

Updated On: 9-Feb-2026

Company X has asked its banking partner for a recommendation on which type of bank account would be best if it has excess funds that are not required for daily cash management. The company determined the excess cash flows by using the short-term cash forecasting distribution method.
Company X will require a return on these funds. Which account is recommended?

  1. Zero Balance
  2. Time Deposit
  3. Demand Deposit
  4. Controlled Disbursement

Answer(s): B



RAL Industries is a manufacturing company that currently has locations in the United States and Latin America and has just completed an acquisition of a company located in Europe. As a result of the acquisition, they have a large number of financial service providers. In an effort to reduce the number of providers and services used globally, RAL has decided to develop a formal selection process to consolidate its many global banking services. In order to reduce the amount of time the selection process takes, determine which services providers can offer, and the number of providers involved in the process, what should RAL Industries issue?

  1. Request for Quote
  2. Request for Proposal
  3. Request for Information
  4. Request for Participation

Answer(s): C



Based on the following information, what is the required collected balance to cover all monthly service charges?

Deposit Float $10,000
Reserve Requirement 5%
Earnings Credit Rate 15%
Monthly Service Charges $6,000
Days in month 30

  1. $308,222
  2. $456,000
  3. $486,667
  4. $512,281

Answer(s): D



ABL Corporation is currently receiving a return of 10% on its investments. The bank is offering them an ECR of 15%. In order to get more value for their money ABL Corp. has decided to take advantage of the higher ECR and use funds from its Money Market Accounts to cover bank service charges.



If ABL already has an average ledger balance of $750,000, how much more do they need to deposit on their account to cover all $10,000 of monthly service charges?

  1. $136,111.11
  2. $736,111.11
  3. $811,111.11
  4. $886,111.11

Answer(s): A



USA Tires, LLC is a U.S. company that manufactures a high performance tire. It has $500 million in annual domestic sales. Customer A is located 50 miles from the USA Tires warehouse. Customer A orders 1,000 high performance tires per month at a price of $50 per tire. It has credit terms of 30 days. Customer B is located 40 miles from the USA Tires warehouse. Customer B orders 1,000 high performance tires per month at a price of $60 per tire. Customer B has credit terms of 20 days.
Which legislation is being violated in the scenario?

  1. Glass-Steagall Act (1933)
  2. Robinson-Patman Act (1936)
  3. Fair Credit Billing Act (1975)
  4. Fair Debt Collection Practices Act (1978)

Answer(s): B



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