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CTP Exam Dumps - AFP Certification Questions and Answers

Question # 74

A privately held company is planning to issue an IPO. If the company decides to do so, which of the following will MOST LIKELY result?

Options:

A.

Decreased liquidity for the company’s stock

B.

Decreased reporting and disclosure costs for company

C.

Increased managerial flexibility for owners of the company

D.

Increased ability to determine company value

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Question # 75

An international company would establish a re-invoicing center for which of the following reasons?

Options:

A.

To reduce its international balance reporting charges

B.

To manage the foreign exchange exposure of its foreign subsidiaries

C.

To take advantage of interest-bearing demand deposits

D.

To bring transaction exposures more closely in line with economic exposures

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Question # 76

A company has a line of credit and a bond trustee agreement with a bank. To prevent a decline in the company’s bond rating from having a negative impact on the company’s line of credit, the bank should have which of the following in place?

Options:

A.

Code of conduct

B.

Confidentiality agreement

C.

Notional barrier

D.

Risk profile

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Question # 77

Which of the following instruments simplifies the paperwork connected with loans that have multiple advance features?

Options:

A.

Master note

B.

Banker's acceptance

C.

Indenture agreement

D.

Note purchase agreement

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Question # 78

Which of the following is a true statement about operating leverage?

Options:

A.

The higher the company’s fixed costs are, the lower its operating leverage.

B.

The higher the company's fixed costs are, the higher its operating leverage.

C.

The lower the company's fixed costs are, the higher its operating leverage.

D.

The higher the company's variable costs are, the higher its operating leverage.

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Question # 79

A financially sound company sends wires to investors in the morning but does not receive replacement funds until the afternoon. Which facility will the company MOST LIKELY arrange with its bank to facilitate the company’s wire payment activities on any given day?

Options:

A.

A ledger overdraft

B.

A daylight overdraft

C.

A standby letter of credit

D.

A short-term line of credit

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Question # 80

A real estate development company has excess cash that it would like to invest in one of its properties:

  • Property A has shown an ROI of 40%, a residual income of $25,675, and an EVA of $32,678.
  • Property B has shown an ROI of 45%, a residual income of $27,635, and an EVA of $29,523.
  • Property C has shown an ROI of 55%, a residual income of $22,658, and an EVA of $30,678.
  • Property D has shown an ROI of 52%, a residual income of $19,675, and an EVA of $31,523.

In which property should the company invest?

Options:

A.

Property A

B.

Property B

C.

Property C

D.

Property D

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Question # 81

Which one of the following ties a user’s private key to a user’s public key?

Options:

A.

A digital signature

B.

A digital certificate

C.

A digitized signature

D.

A digital token

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Question # 82

A town has $25 million excess funds to invest long term. The town’s investment policy requires it have full FDIC coverage on all investments. The town is willing to do its own due diligence on the financial institutions that they invest in, but would prefer to have one statement. Which of the following investment options meets its requirements?

Options:

A.

Certificate of Deposit Account Registry Service

B.

Separately managed diversified portfolio

C.

Institutional Money Market Account

D.

Jumbo Certificates of Deposit

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Question # 83

Which of the following capital budgeting methods ignores the time value of money?

Options:

A.

Payback period

B.

Profitability Index

C.

Net Present Value

D.

Internal Rate of Return

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Exam Code: CTP
Exam Name: Certified Treasury Professional
Last Update: Feb 22, 2025
Questions: 932
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