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Certified Treasury Professional Questions and Answers

Question 37

Which of the following is subject to transaction exposure?

Options:

A U.S. company’s foreign subsidiary in Japan has a receivable denominated in Yen.

A Japanese company’s foreign subsidiary in the U.S. has a receivable denominated in Yen.

A U.S. company’s foreign subsidiary in Japan has a payable denominated in Yen.

A Japanese company’s foreign subsidiary in the U.S. has a payable denominated in dollars.

Question 38

Which of the following is NOT a drawback to using ROI as a performance measure?

Options:

It may be misleading when cash flows are not evenly distributed over time.

It does not consider the profit generated by a project.

It does not include a charge for cost of capital.

It may lead to rejection of a positive NPV project.

Question 39

An arrangement in which a borrower makes periodic payments to a separate custodial account that is used to repay debt is known as a:

Options:

sinking fund

balloon payment

mortgage

zero-coupon bond

Question 40

A distribution business has used several bank loans to finance its expansion plans. After a fire destroyed the company’s facility and inventory, it went out of business due to the loss of revenue during the month it was closed. What type of insurance coverage should the company have had to prevent its demise?

Options:

Cost reimbursement

Property

General liability

Business interruption

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AFP AFP Certification CTP New Questions

Certified Treasury Professional Questions and Answers

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