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Certified Treasury Professional Questions and Answers

Question 65

The renegotiation of trade payment terms in an e-commerce environment should include which of the following?

Application of the payment to the accounts receivable system

NACHA format chosen for the payments

A bank that will process the payment

Evaluation of payment clearing history

Question 66

An increase in the availability float on a company's collections would cause a reduction in which of the following?

I. Earnings credit

II. Ledger balance

III. Service charges

IV. Collected balance

I and II

I and IV

I, II, and III

II, III, and IV

Question 67

Which of the following functions is LEAST likely to be part of a cash manager's responsibilities?

Funds movement

Bank compensation

Forecasting

Long-term financing

Question 68

Which of the following is NOT characteristic of commercial paper with a term of less than 270 days?

It is usually sold through a dealer.

It is considered an unsecured promissory note.

It typically costs less than bank debt.

It must be registered with the SEC.