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AFP Certification CTP Book

Page: 23 / 34
Question 92

A company expects the U.S. dollar to depreciate in value compared to the British pound. The company will have a British pound payment to make in five months. The company would MOST LIKELY buy:

Options:

A.

a U.S. dollar call.

B.

a U.S. dollar put.

C.

a British pound call.

D.

a British pound put.

Question 93

An accounts payable manager has been mandated to accept all trade discount opportunities with an effective cost of discount above 25%. An invoice has been presented and approved for payment with terms of 3/5, net 30 days. What is the difference between the effective cost of discount offered, and the 25% rate set by the company?

Options:

A.

14%

B.

17%

C.

20%

D.

22%

Question 94

In order to be defined as independent, a corporate director:

Options:

A.

cannot have owned preferred stock shares in the company.

B.

cannot have a material relationship with the company.

C.

cannot meet regularly with executive management outside of board meetings.

D.

cannot have been an employee with the company during the past three years.

Question 95

An employer wishing to reduce operating income volatility would MOST LIKELY offer what type of retirement option to its employees?

Options:

A.

Defined contribution plan

B.

Defined benefit plan

C.

Retirement bonus plan

D.

Cash balance plan

Page: 23 / 34
Exam Code: CTP
Exam Name: Certified Treasury Professional
Last Update: Dec 22, 2024
Questions: 932
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