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Passed Exam Today CTP

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Question 124

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.

Question 125

A company is experiencing the following long-term trend on a month-over-month basis:

With all other income, expenses, long-term assets and liabilities remaining stable, this trend would MOST LIKELY prompt what action by the company?

Options:

A.

Financing working capital requirements

B.

Repaying short-term debt

C.

Reducing labor costs

D.

Factoring accounts receivable

Question 126

Company XYZ is conservative when investing in their short-term portfolio. XYZ is looking to add the following money market instruments in their own country: a reverse re-purchase agreement, a floating-rate note, and a negotiable certificate of deposit. What types of investment risks are associated with these instruments?

Options:

A.

Credit and price risk

B.

Liquidity and price risk

C.

Default and liquidity risk

D.

Default, liquidity and price risk

Question 127

A company is looking to improve its collection rate of returned checks. If the company implements re-presented check entry (RCK) with its bank, it might see a reduction in what type of returned items?

Options:

A.

Consumer payments less than $2,500

B.

Corporate payments less than $2,500

C.

Consumer payments more than $2,500

D.

Corporate payments more than $2,500

Page: 31 / 34
Exam Code: CTP
Exam Name: Certified Treasury Professional
Last Update: Dec 22, 2024
Questions: 932
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