A major publicly owned U.S. airline announces that it can no longer meet its pension obligations. Which organization will assume control of the airline’s pension plan?
An investor is willing to participate in the initial bond issue of a trading company. The investor wants to be assured of his return although at the same time the company requires flexibility to adjust its balance sheet to future developments. What would the investor seek to have included in the indenture?
Which of the following are differences between securities issued through the primary and private capital markets?
I. Cost of issuance and speed of execution
II. Investor base
III. Reasons for the offering
IV. Registration requirements
Company ABC wants to consolidate bank balance reporting, do daily cash positioning, and make payments from a centralized platform for multiple banks. What vehicle should the company use?
Multinational companies use all of the following methods to manage intercompany transactions EXCEPT:
Why is the valuation of common stocks different from that of preferred shares?
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:
Use the information in the data set to calculate the earnings credit.
An employee is considering two investment strategies for his 401(k) plan:
Strategy #1: Invest all contributions in a money market fund that has returned 5% annually
Strategy #2: Invest all contributions in a stock fund that has returned 9% on average, although annual returns have varied between (2%) and 12%
Assuming that the employee makes a one-time investment of $12,000 and that both strategies continue to perform as they have historically, how much more or less could the stock fund be worth after one year compared to the money market fund?
Company A purchases materials on cash-before-delivery terms, while Company B uses paid-on-production terms. Both companies are diligent with the protection of assets, but Company B has concerns with respect to transfer of title of the materials. Company B is MOST LIKELY what type of business?
Which one of the following is true of capital repatriation for multinational companies?
The treasurer at Company ABC would like to assess the quality of the company's A/R at an aggregate level by knowing how long the company takes to convert a credit sale into cash. Identify which method the treasurer should use and calculate the result by using the following information regarding Company ABC:
Annual Revenue = $4,500,000
Annual Credit Sales = $3,800,000
Accounts Receivable = $800,000
In comparing the U.S. banking system and foreign banking systems, which of the following statements is true?
Company ABC located in the United States wants to collect from an international customer. Which collection method provides both the buyer and the seller with the best combined security for both parties?
The treasury department has received budget approval to purchase and implement a treasury management system that would help them with operational activities. The project team has defined the system requirements. They want a solution that will integrate with other systems. The system needs to be configurable but not customizable, and it will only be used by the treasury department. The treasury team does not have designated IT support, so they do not want to have to worry about future upgrades. After researching many options, what type of technology solution should be recommended by the project team for a TMS?
A company with operations throughout Europe uses banks that do not provide a full range of local banking services. What would be the BEST approach to concentrate cash?
Which of the following fundamental factors involved in determining an operational risk management strategy is most affected by the new corporate governance standards and “whistle-blower” laws?
Company A offers a network to business clients wishing to exchange invoice and remittance information amongst themselves. During the course of business, Company B on the network complains that it is not receiving payments from its clients on the network, who, in turn, claim they are not receiving invoices from the company. What information security practice did Company A NOT ensure was in place to prevent realizing this technology risk?
A company's basic investment objectives should include all of the following EXCEPT:
ABC Industries, a Canadian company, is in the process of acquiring a company in Europe for EUR100 million. The company has entered into a forward contract to lock in the purchase price and sell CAD and buy EUR on May 30th. Due to legalities, management now expects to finalize the acquisition on July 30th. The treasury manager of the company is MOST LIKELY to recommend which of the following to unwind the forward contract on May 30th?
TESTED 13 Sep 2025