Your Path to Success: How to Pass the AFP CTP Certified Treasury Professional Exam

As rates on current issues rise, the price of existing issues falls.

In anticipation of lower long-term rates, investors push short-term rates down.

The longer the maturity of the investment, the greater the risk of a price decline.

The longer the maturity of the investment, the lower the rate of return.

I and II only

II and III only

I, III, and IV only

I, II, III, and IV

Commits funds to finance accounts receivable.

Operates its own credit function as a subsidiary.

Receives the full face value of the sale in most cases.

Loses authority to decide which customers receive credit.

Issuer's credit rating

Method of settlement

Interest rate risk

Dealer used

They are an expense to the company.

They are a distribution of profits.

They are based on the value of the company's stock.

They are declared by the chief financial officer.

transactions are value-dated.

transactions are initiated electronically.

receiving and originating institutions settle simultaneously.

Fed charges back the cost of float.

Per-item service costs

Average volume

Ledger balance

Earnings credit rate

Convertible bond

Government warrant

Bill of lading

Banker's acceptance

Automating account analysis reporting

Unbundling bank charges

Comparing costs among banks

Setting target balances

intracompany transactions.

giro payments.

third-party payments or receipts.

foreign exchange transactions.

account analysis statements.

account resolutions.

service agreements.

signature cards.

It is a right to buy or sell foreign currency at a specified price within a fixed time period.

It does not require an underlying commercial transaction because the contract trades on its own.

It specifies delivery of currencies at an exchange rate established today for a currency transaction that settles more than two days in the future.

It is an exchange of currencies at the outset of a transaction at a fixed rate determined by the spot markets.

Retail lockbox

Network of wholesale lockboxes

Pre-authorized payment program

Field deposit system

earnings credit rates.

reserve requirements.

ledger balances.

fee structures.

move funds to where they can be used most productively.

eliminate service charges at outlying field banks.

minimize the number of disbursement banks required.

improve the predictability of cash outflow.

more than one lender commits to them.

loan advances and payments are divided among the participants.

loan servicing is provided by the lead institution.

they are traded in the secondary market.

Present value calculations

Yield curve analysis

Return on investment

Exponential smoothing

UCC.

FinCEN.

OCC.

OFAC.

is less than the strike price.

exceeds the strike price.

is unchanged relative to the purchase price.

is equal to the strike price.

I, II, and IV

I and III

II and IV

II, III, and IV