Question 1

In analyzing the costs for services among several banks, a cash manager should compare all of the following EXCEPT the:

Options :

A : earnings credit rates

B : reserve requirements.

C : ledger balances.

D : fee structures.

Answer: C

Question 2

DGB Inc.’s CEO and founder retired shortly after the company went public two years ago. DGB Inc. has recently struggled, and the founder has agreed to return as an independent director. What violation, if any, has occurred?

Options :

A : The cooling-off period has not been met.

B : Section 404 of the Sarbanes-Oxley Act has been violated.

C : ERISA disclosure requirements have not been met.

D : No violation has occurred.

Answer: A

Question 3

Which of the following is an example of a typical passive investment strategy?

Options :

A : Riding the yield curve

B : Using a dividend capture program

C : Investing in overnight repos

D : Executing a securities swap

Answer: C

Question 4

Which of the following investment instruments is a discount instrument?

Options :

A : Banker-s acceptance

B : Yankee CD

C : Treasury note

D : Municipal bond

Answer: A

Question 5

All of the following staff would be involved in the evaluation of an outsourced accounts payable solution EXCEPT:

Options :

A : an internal auditor.

B : a treasurer

C : a controller.

D : a credit manager.

Answer: D

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