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

A company enters into a cash flow hedge to offset fluctuations in the value of foreign currency transactions occurring in two years. How should the company record the gains and/or losses on the cash flow hedge in the current year?

A company with a relatively poor credit rating borrows most of its funds with short maturities. They may want to change its exposure to interest rates to more correctly reflect the long-term nature of the projects it is funding. Or, they may believe that long-term interest rates are going to rise, causing it to seek protection against the impact of higher interest rates on its balance sheet. Which of the following would be a solution?

For a retirement plan to be qualified under ERISA, employer and employee contributions must be:

The principal roles of corporate finance include which one of the following combination of functions?

A company invests all of its short-term excess cash in T-bills on a daily basis. To prevent delays in processing its outgoing wire transfers, the company may ask its cash management bank to establish a:

A company has negotiated a credit facility with the following terms:

• $5,000,000 line of credit
• $3,000,000 average borrowing
• 30 basis point commitment fee on the unused portion of the line
• Interest rate on advances is 1-month LIBOR plus 4%
• 1-month LIBOR is currently 2%

What is the annual interest rate on the line of credit?

Which of the following is NOT an operational risk?

Which of the following could be considered a weakness of a forecast derived by regression analysis?

Unrealized holding gains and losses arise when trading securities are:

When projecting the closing cash position, a cash manager must estimate which of the following?

A company has large, ongoing short-term financing requirements with a maximum horizon of 250 days. It has a good credit rating and would like to use the least expensive source of short-term debt to finance its needs. The Treasurer might recommend which of the following?

What does a company with a restrictive current asset investment strategy typically have?

When using the Internet to access auction markets, companies may use certificate authorities to reduce their exposure to which of the following types of risk?

Which of the following is a KEY operational advantage of short-term debt?

Underfunded pension obligations can be reduced by:

The exchange of a fixed interest rate cash flow for a floating interest rate cash flow with both interest rates in the same currency is an example of:

In order to increase liquidity, ABC Motor Company bundled its customers’ installment payments and resold them to other investors. This is known as:

A treasurer has been advised that his privately held company has just lost its largest customer, which will have a significant impact on earnings. The treasurer applies an aggressive working capital strategy. Presently, the yield curve is upward sloping. Given this information, the treasurer should ensure that the company has:

When evaluating a FSP during the RFP process, a company should place a high value on a FSPs financial strength when the provider: