Free Certified Treasury Professional Questions And Answers

Question 1

The majority of the above are treasury management duties, EXCEPT:

Accepted Answer

collecting and presenting financial information

Answer

managing risk

Answer

investing for short and long-term needs

Answer

maintaining liquidity

Question 2

The company's treasury management function has the following requirements in order to operate effectively:

Accepted Answer

have collaborative relationships with departments internal to the company such as purchasing and accounting, as well as with various outside financial institutions and agencies.

Answer

have extensive internal collaboration with other departments within the company.

Answer

limit its internal collaboration to only those with accounting-related functions within the company.

Answer

have external collaborations involving interactions with financial institutions, rating agencies and legal counsel.

Question 3

Which of the following, in relation to treasury management, best describes the phrase "benchmarking"?

Accepted Answer

A company researches other successful companies for the purpose of examining what they do and its treasury management processes to theirs, in the hope of identifying “best practices” that it can recreate and benefit from.

Answer

A company seeks to improve its efficiency and productivity, and moves to entirely redesign its business processes.

Answer

A company combines with another so as to have only the acquiring company retain its legal identity, along with the downsizing or potential elimination of one of the two companies’ treasury operations.

Answer

A company looks to have a third party take on, in whole or in part, its treasury functions.

Question 4

The following consequences on the economy result from Federal Reserve (Fed) action to increase the discount rate, WITH the exception of:

Accepted Answer

The new rate provides an increase in the level of borrowing due to banks lowering their rates for providing credit to consumers.

Answer

The higher cost of credit is imposed on consumers, which results in a slowing of their rate and level of borrowing.

Answer

The level of growth as related to the money supply becomes more limited.

Answer

The cost of credit increases for banks, thus raising the rates they set for their own lending to consumers.

Question 5

What banking rules of the Federal Reserve Board apply to consumers who use different types of credit and lending in an educated manner?

Accepted Answer

Regulation Z

Answer

Regulation D

Answer

Regulation E

Answer

Regulation J

Question 6

What services do investment banks with headquarters in the United States offer?

Accepted Answer

They underwrite an issuance of securities by a company to be sold to the public, and act as an advisor to their institutional clients.

Answer

They act as agents to provide commercial paper to investors and facilitate the purchase of municipal securities.

Answer

They operate in multiple countries, primarily with international corporations, providing foreign exchange and transaction services.

Answer

They offer a full range of financial services, including personal savings accounts and consumer lending.

Question 7

The following is the name of the document that gives permission for a company representative to work with a financial institution to obtain financial services:

Accepted Answer

account resolution

Answer

signature card

Answer

service agreement

Answer

service level agreement