Certified Treasury Professional Payment Systems and Technology Questions and Answers

Question 1

A treasury manager at a large corporation is tasked with improving the efficiency of processing payments to its suppliers. The company frequently deals with high-value, time-sensitive domestic payments and is looking for a system that offers immediate, final settlement to improve supplier relationships and better manage liquidity. Which of the following payment systems would be most appropriate for this purpose?

Accepted Answer

Fedwire Funds Service

Answer

Fedwire is the most suitable option because it is a real-time gross settlement (RTGS) system operated by the Federal Reserve. This means payments are processed individually and settled immediately, providing finality. This is ideal for high-value, time-sensitive domestic transactions. ACH processes in batches and is not real-time, CHIPS settles on a net basis at the end of the day, and SWIFT is a messaging system, not a settlement system.

Question 2

Which of the following is a primary benefit for a corporation adopting the ISO 20022 standard for its payment messaging?

Accepted Answer

The ability to transmit richer, more structured data, which enhances automated reconciliation and analytics.

Answer

The primary advantage of ISO 20022 is its use of a modern, XML-based format that allows for the inclusion of richer and more structured data within a payment message. This detailed information significantly improves straight-through processing (STP), automates payment reconciliation, enhances cash flow forecasting, and strengthens compliance and fraud detection capabilities.

Question 3

A company is reviewing its treasury operations and wants to understand the primary purpose of the Check Clearing for the 21st Century Act (Check 21). Which statement accurately describes the main function of this act?

Accepted Answer

It establishes the legal framework for creating and accepting 'substitute checks' (digital images of original checks), which have the same legal standing as the original paper check.

Answer

The Check 21 Act was designed to facilitate check truncation by creating a new negotiable instrument called a substitute check. This substitute check is a paper reproduction of the original check and is legally the same as the original. This allows banks to process check information electronically, speeding up the collection process without requiring all banks to accept electronic images.

Question 4

A company's treasury department is analyzing the costs associated with accepting credit card payments from customers. The largest component of the merchant discount fee is typically the:

Accepted Answer

Interchange fee paid to the card-issuing bank

Answer

The interchange fee is consistently the largest portion of the total cost a merchant pays for accepting a card payment. This fee is paid by the merchant's acquiring bank to the customer's card-issuing bank to cover costs and risks associated with the transaction, such as fraud and handling costs.

Question 5

A direct-to-consumer company wants to offer its gig economy delivery drivers the option to be paid instantly at the end of each shift, 24/7, including weekends and holidays. Which payment network characteristic is essential to meet this requirement?

Accepted Answer

Real-time payments (RTP) with 24/7/365 availability

Answer

Real-Time Payments (RTP) networks are specifically designed to operate 24/7/365 and provide instant credit of funds to the recipient's account with immediate confirmation to the sender. This is ideal for use cases like gig economy payouts, where instant and continuous availability is a key requirement.

Certified Treasury Professional Exam Practice Test

Certified Treasury Professional Exam Practice Test

Certified Treasury Professional Payment Systems and Technology Questions and Answers