Pass the AFP Certification CTP Questions and answers with ExamsMirror

A bank employee programs an internal payment system to transfer half a cent of each transaction to her personal bank account. What type of risk does this behavior illustrate?

XYZ Company is a net borrower. Its cost of funds is 5.0%, its earnings credit rate is 3.0%, and the reserve requirement is 10%. Average service fees are $50,000 per month. Its average ledger balance is $2,000,000, and its average collected balance is $1,000,000. What are the collected balances required to pay for services during a 30-day month?

Based on the above information, before making the major acquisition, several large institutional shareholders have asked management to consider all of the following EXCEPT:

All of the following would encourage a company operating nationwide to develop multiple banking relationships EXCEPT:

An auto manufacturer experienced a decline in sales, an increase in inventory, and an increase in labor costs over the past two months. With all else being equal, what is the MOST LIKELY impact to the company's balance sheet?

Which of the following is a disadvantage of e-commerce?

Which of the following is an example of using cash forecasting for liquidity management?

In an international banking system, what role is commonly carried out by a large group of clearing banks?

A supplier can improve invoicing float by:

All of the following are an EDI benefit EXCEPT:

The lockbox receipt records for one 30-day month are provided below. The opportunity costs are 10%.

What is the annual cost of float rounded to the nearest dollar?

Which method of financing would a company use to establish a wholly owned subsidiary to perform credit operations and obtain accounts receivable financing for the sale of products?

A company can dispute any check alterations within how many days after the bank statement has been sent?

A company’s overall cost of capital depends on the:

The discount rate for a T-bill with a face value of $200,000, 182 days to maturity, and a selling price of $194,375 would be:

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?

A commercial paper issuer who repays investors earlier in the day than it receives funds from new investors often creates which of the following?

MICR encoding errors may be detected by all of the following TMS modules EXCEPT:

T-bill discount rate = 5.85%

T-bill face value = $100,000

Initial term = 90 days

What is the bond equivalent yield on this T-bill?

ABC Company is a net borrower with a weighted average cost of capital of 11.5%. What kind of bank fee arrangement is it likely to prefer?