Free AFP CTP Practice Test & Real Exam Questions

Company XYZ requested lockbox details from its bank. The company currently receives checks that have both machine-readable remittances and attached remittance information. What would cause Company A to select a retail lockbox versus a wholesale lockbox?

An Australian firm wishes to borrow CAD 100 million for 10 years to fund an investment in Canada that matures in 12 years. The current exchange rate is AUD/CAD 1.25. The company expects to use the annual net profit of CAD 25-50 million to fund its interest and principal payments. In a rising rate environment, the firm is able to lock in a fixed interest rate of 2.95% from its Australian lender. A Canadian lender is willing to provide a floating rate CAD loan at 235 basis points over the Bank of Canada benchmark lending rate of
0.5%, offering an all-in interest rate cap of 6.00% with a 75 bps premium. What should the company do to manage its foreign exchange exposure?

Pricing distortions, limited risk-sharing options, and capital controls are characteristics of:

Which of the following objectives of treasury management refers to a company's ability to meet current and future financial obligations in a timely, efficient, and cost-effective manner?

On the basis of the following exchange rates,

which of the following currency amounts has the greatest value in U.S. dollars?

Examples of fixed assets include which of the following?
I. Inventory
II. Treasury bills
III. Forklift
IV. Goodwill

In cash forecasting, which of the following is a certain cash flow?

What is the premium (price) for an oil contract, if the following conditions are present?
LIBOR rate of 5%
Out of the money cost of $3
Strike price is $4
In the money price of $1
Speculative premium of $2

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

The Treasury Manager is forecasting sales based on historical data. It was observed that sales decreased sharply in December last year, normally a high sales volume period. Further investigation indicated that a severe winter storm was experienced across the Southeastern United States. How should this event be classified in the forecast when considering the sales trends?

Which of the following is NOT true for both bankers' acceptances and trade acceptances?

XYZ Company has decided to purchase a close competitor. This acquisition would make XYZ Company the
4th largest in its industry allowing it better purchasing power and greater distribution channels. After completing the M&A analysis, it is determined that the combined companies would produce a 40% increase in revenue, reduce manufacturing costs by 30%, but would increase current liabilities by 27%. Which of the following would keep the acquisition from happening?

EML Inc., which has $600 million in outstanding debt, is preparing to issue commercial paper in excess of
$100 million within the next six months. The new assistant treasurer has recently spent time getting to know the issuing and paying agent, the rating agency analyst, and the legal counsel, and has been following the financial markets. What is this is an example of?

A construction company just received a notification from its bank advising it of an altered dollar amount on a check. This notification is MOST LIKELY the result of: