Passing AFP CTP Exam Using 2025 Practice Tests [Q635-Q659]

QUESTION 635
Which institution or accord was approved in 2009 to strengthen the regulatory capital framework for banks by focusing on minimum capital requirements, supervisory review and market discipline?

QUESTION 636
Which of the following can be used for monitoring accounts receivables?
I. Aging schedule
II. Credit terms
III. Days’ sales outstanding
IV.
Receivables balance pattern

QUESTION 637
Investors typically require a higher yield as compensation for holding securities that have:

QUESTION 638
A large U.S. company is planning to fund its Canadian subsidiary. Currently, the Canadian dollar is trading at CAD 1.25 per U.S. dollar, and the U.S. dollar is expected to depreciate in the near term. To manage this FX exposure, what technique should the company implement?

QUESTION 639
Which of the following is an example of a passive investment strategy?

QUESTION 640
Which one of the following is true of capital repatriation for multinational companies?

QUESTION 641
A company has made all required payments on its revolving credit facility but its debt to tangible net worth ratio violates the facility’s covenant. What has occurred?

QUESTION 642
Based on the above information,

if the company uses the trade-off theory in considering its WACC, how will it finance its growth?

QUESTION 643
If a company does not have cash available to make an interest payment on a bond, the company is experiencing difficulty with its:

QUESTION 644
Which of the following is a source of short-term financing?

QUESTION 645
A company wishes to monitor and control office expenses incurred by its employees. Which of the following offers the BEST method of providing the employees freedom to choose different vendors while maximizing spending control?

QUESTION 646
In a typical swap transaction, two parties agree to exchange:

QUESTION 647
On June 1, a manufacturing company experienced a system failure that lasted more than 24 hours. The company did not have any contingency plans in place and as a result the cash manager was unable to process the following payments: $25,000 to the p-card issuer, $125,000 for weekly payroll, $500,000 for a bond interest payment, $260,000 for the weekly vendor payments and $50,000 for the monthly utilities. The receivables were deposited at the bank; however, the cash manager does not have a way to confirm the amounts. The suppliers are threatening to stop shipments due to the delay in payment and the loss of supplier shipments threatens the company’s just-in-time production. What did the manufacturing company trigger as a result of the system failure?

QUESTION 648
XYZ Company’s cash manager is evaluating cash concentration transfer options. The company has an 8% cost of funds and $50,000 in average daily field cash receipts. The wire transferresults in the transfer of funds one day faster. Which of the following options correctly ranks the transfer choices from most cost-effective to least cost-effective?
1.Electronic depository transfer costing $1.00
2.Electronic depository transfer costing $2.50
3.Wire transfer costing $8.00
4.Wire transfer costing $15.00

QUESTION 649
Company XYZ has determined that its weighted average cost of capital is 12.5%. The capital structure of the company is made up of 75% equity and 25% debt. The before-tax cost of debt is 10%. Given a tax rate of
34%, what is XYZ’s cost of common stock?

QUESTION 650
XYZ Company has incurred a financially devastating event because of a hurricane at its offshore manufacturing plant. Due to the impact on liquidity, the company may not be able to survive. What should the Treasurer have done in order to assess the risk associated with this type of event?

QUESTION 651
Which of the following is an example of an intangible asset?

QUESTION 652
Liquidity reserves for opportunistic requirements are typically maintained in the form of:

QUESTION 653
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?

QUESTION 654
Traditionally the primary source of operating risk in the area of external theft or malfeasance has been related to:

QUESTION 655
XYZ Company is a publicly held manufacturing company that has decided to branch out into the international market. Five million dollars is needed to set up management and hire the factory workers, $2 million for various government certifications in order to begin business in Poland, and $1 million for miscellaneous expenses. While looking for funding, XYZ found that local banks in Poland were not willing to provide financing without which of the following?

QUESTION 656
A manager has prepared an analysis of five investment alternatives. Prior to selecting which alternative to invest funds in, the manager calculated the anticipated return for all options. The manager is only going to invest in one alternative. The four investments that are not chosen are:

QUESTION 657
CT Check Cashing routinely cashes payroll checks from JD Software. Someone presents a fraudulent check from JD Software to CT Check Cashing. The fraudulent item looks virtually identical to JD Software’s regular payroll checks. CT Check Cashing pays the person cashing the check the amount for which it is issued. CT Check Cashing later discovers that the check was fraudulent and wants JD Software to reimburse them for the amount of the check. Which of the following statements is correct?

QUESTION 658
An investment is purchased for $10,000.00 that offers compounding of the first year’s interest and it matures at the end of year two. If the value at maturity is $11,664.00, what is the rate of return on the investment?

QUESTION 659
Which of the following is subject to translation exposure?