AFP Certified Treasury Professional (CTP) Free Practice Test
Question 1
Traditionally the primary source of operating risk in the area of external theft or malfeasance has been related to:
Correct Answer: C
Question 2
The actions taken by a company regarding crisis management, alternative operating procedures, and communications are referred to as:
Correct Answer: D
Question 3
To strengthen outside auditor independence with regard to publicly held companies, the Sarbanes-Oxley Act requires that:
Correct Answer: A
Question 4
What determines if the currencies of two countries will trade at a discount, at par, or at a premium in the forward market?
Correct Answer: A
Question 5
Which currency will sell at the greatest discount in the forward market against the U.S. dollar?
Correct Answer: D
Question 6
XYZ Incorporated, located in Ontario, Canada, is looking to purchase bulldozing equipment for its rental business. ABC Company, which is located in Wyoming, United States, has offered to sell XYZ Inc. $5 million USD worth of equipment payable to ABC Co. over the next six months. If XYZ Inc. purchases this equipment from ABC Co., what is the risk it is taking with this transaction?
Correct Answer: C
Question 7
A large U.S. based multinational corporation favors use of intra-company loans to repatriate funds from its foreign subsidiaries in order to take advantage of the favorable tax treatment of loans. In those countries which restrict repayment of intra-company loans the corporation may need to:
Correct Answer: A
Question 8
The Treasurer for XYZ Manufacturing, Inc. recently exchanged a portion of its euro holdings into U.S. dollars to purchase gas futures contracts. This was done in anticipation of an assumed rise in gas prices due to the continued weakening of the U.S. dollar. Which of the following types of risk is being mitigated?
Correct Answer: B