A treasurer has a critical acquisition for which a wire must be sent by a certain time or the acquisition will fall through. In the event the web portal through which wires are sent is down, the treasury staff is authorized to initiate and release wires by phone with the bank. Two weeks prior to the acquisition, the treasurer decides to make a wire payment by phone, even though the web portal is functioning. This is an example of which stage of developing a business continuity plan?
A U.S.-based bank finalized an ISDA master agreement with a large Mexican corporation. Subsequently, the corporation entered into a one-year OTC derivative with the bank to hedge against increasing corn prices. Which of the following statements is correct?
A multinational corporation (MNC) moving all of its Mexican peso-denominated revenues into a lower tax-rate jurisdiction could adopt any of the following treasury practices EXCEPT:
Management is concerned with the level of volatility in the company's fixed income portfolio. Which of the following measures will provide management with the MOST comprehensive view of portfolio volatility?
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?
The assistant treasurer for ABC Inc. has been transferred to the headquarters in another country. While conducting a treasury review, the assistant treasurer noticed that a single associate was responsible for maintaining the company's complicated international transfer pricing schedules on a series of inter-linked computer spreadsheets. These spreadsheets were saved on the associate's computer versus the company's mainframe. The associate did not have a backup cross-trained in the function. Which critical types of risk management require the assistant treasurer's immediate attention?
What is the PRIMARY concern in disbursements?
A company's credit policy is influenced by all of the following EXCEPT:
The U.S. Treasury unexpectedly announces a plan to issue $100 billion of U.S. Treasury bills. Which of the following would MOST LIKELY affect U.S. short-term bond prices and interest rates (all other factors stay constant)?
The Sarbanes-Oxley Act of 2002:
After receiving responses to its bank services request for proposal (RFP), a company with simple accounts payable (A/P) and accounts receivable (A/R) needs narrows the selection to two banks, but their pricing methodologies are different. Assume that each financial institution offers identical payment services, uses a 30 day month and a 12 month year for calculations and disregard any tax implications. Using the information in the data set, what would be the bank and cost of the optimal option?
A positive pay service is one where the bank:
ABC, Inc. is a pharmaceutical company operating globally. Which of the following payment methods is arranged from the most seller protection to the least?
Which of the following is a PRIMARY responsibility of a company's risk management function?
For days’ sales outstanding to be a meaningful method for evaluating the effectiveness of a company's receivable collections, it is usually compared to the:
Based on the data set, how much money will ABC Company owe the bank for monthly service charges after the earnings credit is applied?
Companies following an aggressive strategy for financing working capital and other assets have higher risk due to which of the following?
The shares of a large East European mining company have been recently listed on the New York Stock Exchange. The company hired a compliance officer to ensure that the company meets or exceeds the laws that govern listed companies in the United States. Which of the following recommendations is required?
Transmission of a file of items presented for payment by the payor bank to the issuing company is known as:
Since inception, an automobile manufacturer receives all of its parts from the leading industry supplier. What type of risk will the company reduce if it uses an additional distributor?
