Ctp-5 Practice | Test Pdf

A firm wants to accelerate check collections from customers in rural areas. Which service is most effective? A) Controlled Disbursement B) Lockbox with remote capture C) Zero Balance Account D) Positive Pay

A ($2M surplus) Rationale: Net = ($10M + $15M - $18M) = $7M available. Subtract $5M reserve = $2M surplus liquidity. Ctp-5 Practice Test Pdf

B Rationale: Lockbox services allow customers to send payments to a PO Box; the bank processes checks faster. Remote capture digitizes checks for quicker clearing. Domain 3: Risk Management (FX & Interest Rate) Q5. A US company will pay €1,000,000 to a German supplier in 90 days. The CFO fears the euro will strengthen against the dollar. Which hedge is most direct? A) Buy a call option on USD/EUR B) Buy a put option on EUR/USD C) Enter a long forward contract on EUR/USD D) Sell a futures contract on EUR A firm wants to accelerate check collections from

C Rationale: ZBAs sweep funds from subsidiary accounts to a master account, allowing centralized control and maximizing investment opportunities or reducing overdrafts. Subtract $5M reserve = $2M surplus liquidity