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CTP – Certified Treasury Professional

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Showing 4–6 of 20 questions

Question 4 (Volume C)

A large retailer is preparing to accept credit cards and anticipates monthly credit card sales of $1,000,000. If the terms with the acquiring bank include bundled allocated fees of 6% and the retailer wishes to delay fee payment as long as possible, what should the retailer do?

Select an option, then click Submit answer.

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    Accept gross settlement.

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    Place a hold on consumer credit limits.
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    Receive net settlement.

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    Delay funds transfer to card-issuing banks.
Question 5 (Volume D)

A publicly held U.S. company has reported at the beginning of the year that it expects to increase shareholder value by 5%. The current expectations are for interest rates to remain steady with a decline in fourth quarter. Treasury policy requires that investments be 90 days or less and investment grade. How should the company invest excess cash to support this goal?

Select an option, then click Submit answer.

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    Commercial paper
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    High-yield bonds
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    16-week U.S. Treasury bill
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    BB rated bond
Question 6 (Volume F)

Which of the following is an advantage of a decentralized disbursement system?

Select an option, then click Submit answer.

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    Local manager autonomy
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    The elimination of idle cash balances at local banks
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    The ease of obtaining cash position information
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    Reduced operating costs