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

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.

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

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.

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

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.

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

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.

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

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.

Certified Treasury Professional Exam Practice Test

Certified Treasury Professional Exam Practice Test

FREE Certified Treasury Professional Questions And Answers