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AFP CTP Based on Real Exam Environment

Page: 35 / 35
Total 932 questions

Certified Treasury Professional Questions and Answers

Question 137

The PRIMARY difference between money market instruments and capital market instruments is that capital market instruments are securities that are:

Options:

A.

less than a one-year maturity.

B.

long-term in nature.

C.

generally more liquid.

D.

issued by lenders with credit ratings.

Question 138

Which of the following types of payment transactions requires the authorization of both the initiating and the receiving party?

Options:

A.

A multiple drawee check

B.

A drawdown wire

C.

A depository transfer check

D.

A non-repetitive wire

Question 139

A treasurer is evaluating a project that will cost $1,000 but will return cash flows of $225, $225, $300, $750, and $750 in years 1 through 5, respectively. The company’s interest rate on its debt is 10% and its marginal cost of capital is 15%. What is the Net Present Value (NPV) of this project?

Options:

A.

$364.74

B.

$459.48

C.

$593.84

D.

$643.47

Page: 35 / 35
Total 932 questions