A treasurer is monitoring the yield curve through a service provider (like Reuters) and notices that it is moving from downward sloping to upward sloping. Based on this information, the treasurer should consider:
A main characteristic of a company with regional offices using a centralized treasury function is:
Consolidation and specialization in the financial services industry have made financial institution and financial service provider selection a(n):
A company’s credit agreements or loan covenants may require:
In order to be defined as independent, a corporate director:
An airline wants to lock in the price of the jet fuel it needs to purchase to satisfy the peak in-season demand for travel. The airline wants to manage its exposure to fluctuations in fuel prices. What type of exposure is this?
Banks often control information flow, records and assets, therefore it is critical that banks have:
One of the PRIMARY ways the Fed addresses systemic risk is by:
Disbursement float includes which of the following three float time intervals?
The rate of interest commercial banks charge their best credit rated customers is called the:
Some treasury management systems are capable of initiating investment purchases and loan drawdowns automatically. The automating of these transactions is related to which of the following treasury management functions?
A company expects the U.S. dollar to depreciate in value compared to the British pound. The company will have a British pound payment to make in five months. The company would MOST LIKELY buy:
A national retailer’s cash management system includes a field deposit system using multiple banks. To limit the impact of a failure of one of these banks, a cash manager should:
Unrealized holding gains and losses arise when trading securities are:
A company has large, ongoing short-term financing requirements with a maximum horizon of 250 days. It has a good credit rating and would like to use the least expensive source of short-term debt to finance its needs. The Treasurer might recommend which of the following?
The goal of investor relations is to:
A company has negotiated a credit facility with the following terms:
$5,000,000 line of credit
$3,000,000 average borrowing
30 basis point commitment fee on unused portion of line
Interest rate on advances is 1-month LIBOR plus 4%
1-month LIBOR is currently 2%
Compensating balance requirement of 20% on the outstanding borrowings
What is the effective annual borrowing rate for the line of credit?
The “agency problem” refers to:
For a retirement plan to be qualified under ERISA, employer and employee contributions must be:
The CFO of a growing company has decided that it would be prudent to insure the company against potential loss from dishonest acts of employees. The treasurer has been given the responsibility of selecting and negotiating the type and amount of protection required. After analyzing the overall risk to the company, the treasurer decides that the greatest exposure to this type of risk is within the cash management function of the company. The MOST appropriate type of protection would be:
