FREE Certified Treasury Professional Questions And Answers
What services do investment banks with headquarters in the United States offer?
Investment banks with headquarters in the United States generally support merger and reorganization activities, underwrite securities issuance, and maintain broker relationships with their institutional clients. Providing consumer deposit accounts and lending are credit unions' main priorities. The goal of U.S. commercial banks is to make it easier for investors to buy municipal and commercial paper. With the exception of the fact that they primarily act globally, global (non-U.S.) financial institutions work globally with multinational firms and offer services that are comparable to those offered by investment banks with U.S. bases.
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:
A corporate representative may enter into a contract with the financial institution with the help of the account resolution. What is expected and necessary in terms of the service connection between the business and a financial institution is laid forth in the service agreement. The service level agreement specifies the benchmark service requirements that the contracting financial institution must meet and the consequences of not doing so. The signature card gives the bank all of the company's authorized signers whose signatures are necessary for carrying out the contracted business.
What banking rules of the Federal Reserve Board apply to consumers who use different types of credit and lending in an educated manner?
The Truth in Lending Act of 1968's Regulation Z relates to customers using credit responsibly. The Electronic Funds Transfer Act of 1978 is covered by Regulation E, check collection and settlement is covered by Regulation J, and reserve requirements for all depository institutions are established by Regulation D.
The company's treasury management function has the following requirements in order to operate effectively:
The company's treasury management function must maintain relationships and work in tandem with BOTH its internal divisions, such as purchasing, risk management, and tax, as well as external groups, such as investment managers, regulatory bodies, and legal counsel, in order to function effectively.
The following consequences on the economy result from Federal Reserve (Fed) action to increase the discount rate, WITH the exception of:
With the exception of ""The new rate provides an increase in the level of borrowing due to banks lowering their rates for providing credit to consumers."" which is actually the outcome of the Fed lowering the discount rate, all of the aforementioned are effects of the Fed raising the discount rate.
Which of the following, in relation to treasury management, best describes the phrase "benchmarking"?
Benchmarking is the process through which a business searches out other prosperous businesses in order to uncover ""best practices,"" copy their procedures, and profit from their proven success. When a corporation outsources a task, a third party takes over that task on its behalf. Reengineering is the process by which a business redesigns its operational procedures to achieve greater efficiencies. When two or more businesses come together to form one legal entity, it is called a merger.
The majority of the above are treasury management duties, EXCEPT:
All of the aforementioned tasks fall under the purview of treasury management, with the exception of gathering and presenting financial data, which is of an internal nature and is thus the responsibility of the controller. In contrast, treasury management, which focuses mostly on external finance issues, is responsible for maintaining liquidity, managing risk, and investing for both short- and long-term needs.