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Question 1 of 20
1. Question
Select more than one answer:
Identify the statements that holds true for ACH:Correct
• more secure than cheques but not as secure as wire
• can be used for both credit and debit transfers
• can be used for both single and batch transfers
• must have a beneficiary’s BIC and IBAN for SEPA transfers
• most ACH systems do not accommodate last minute payments
• not all banks can handle information and may need to use a value‐added network (VAN)
• credit implications mean bank may require pre‐funding or a credit lineIncorrect
• more secure than cheques but not as secure as wire
• can be used for both credit and debit transfers
• can be used for both single and batch transfers
• must have a beneficiary’s BIC and IBAN for SEPA transfers
• most ACH systems do not accommodate last minute payments
• not all banks can handle information and may need to use a value‐added network (VAN)
• credit implications mean bank may require pre‐funding or a credit line -
Question 2 of 20
2. Question
Select any TWo advantages of Wire transfers:
Correct
• finality immediate if cleared through a real‐time gross settlement system
• funds can be sent the same day
• normally does not create a float
• can cause intra‐day credit exposure for banks
• higher bank transaction charges, especially cross‐border
• can be used for international payments
• the most secure method of making paymentsIncorrect
• finality immediate if cleared through a real‐time gross settlement system
• funds can be sent the same day
• normally does not create a float
• can cause intra‐day credit exposure for banks
• higher bank transaction charges, especially cross‐border
• can be used for international payments
• the most secure method of making payments -
Question 3 of 20
3. Question
The term ‘checking account’ is used in the USA to describe a ‘demand deposit account’ (DDA), an account that is used for:
Correct
The term ‘checking account’ is used in the USA to describe a ‘demand deposit account’ (DDA) – an account on which checks (cheques) are drawn.
Incorrect
The term ‘checking account’ is used in the USA to describe a ‘demand deposit account’ (DDA) – an account on which checks (cheques) are drawn.
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Question 4 of 20
4. Question
Off‐balance sheet commitments are included in borrowings, the proportion of the commitment included being calculated with a:
Correct
Off‐balance sheet commitments are included in borrowings, the proportion of the commitment included being calculated with a credit conversion factor.
Incorrect
Off‐balance sheet commitments are included in borrowings, the proportion of the commitment included being calculated with a credit conversion factor.
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Question 5 of 20
5. Question
Select only TWO options:
To manage intra‐day risk issues, most payment systems require participants to maintain a certain level of funding in the form of:Correct
To manage intra‐day risk issues, most payment systems require participants to maintain a certain level of funding either in the form of collateral or cash or credit in their settlement accounts
Incorrect
To manage intra‐day risk issues, most payment systems require participants to maintain a certain level of funding either in the form of collateral or cash or credit in their settlement accounts
-
Question 6 of 20
6. Question
Which statement best describes a Transit Float?
Correct
Transit float (also known as mail or postal float): The time taken from origination of the payment until the time the beneficiary receives it.
Incorrect
Transit float (also known as mail or postal float): The time taken from origination of the payment until the time the beneficiary receives it.
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Question 7 of 20
7. Question
Which statement best describes an invoicing float?
Correct
The time between dispatch of goods and the issuance of an invoice is known as ‘system’ or ‘invoicing’ float.
Incorrect
The time between dispatch of goods and the issuance of an invoice is known as ‘system’ or ‘invoicing’ float.
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Question 8 of 20
8. Question
What type of Banks offers a full range of commercial business services with international capabilities?
Correct
Global and super‐regional banks:
Banks that offer a full range of commercial business services with international capabilities. Although these banks may not offer full retail capabilities in every country, they have a branch presence in most major countries and offer local currency servicesIncorrect
Global and super‐regional banks:
Banks that offer a full range of commercial business services with international capabilities. Although these banks may not offer full retail capabilities in every country, they have a branch presence in most major countries and offer local currency services -
Question 9 of 20
9. Question
Which float is also called ‘postal’ or ‘mail’ float?
Correct
Transit float is also called ‘postal’ or ‘mail’ float and can be a major factor in adding float time to the process. This is the first element of cash management float.
Incorrect
Transit float is also called ‘postal’ or ‘mail’ float and can be a major factor in adding float time to the process. This is the first element of cash management float.
-
Question 10 of 20
10. Question
Select more than one answer:
What are the different day to day tasks performed by a Treasury?Correct
Day‐to‐day tasks of treasury:
Cash management
Currency management
Funding management
Risk management
Bank relationship managementIncorrect
Day‐to‐day tasks of treasury:
Cash management
Currency management
Funding management
Risk management
Bank relationship management -
Question 11 of 20
11. Question
Retail businesses are heavily cash and credit card oriented and, therefore, focused on:
Correct
Retail businesses are heavily cash and credit card oriented and, therefore, focused on local collection efficiencies, sometimes seven days a week.
Incorrect
Retail businesses are heavily cash and credit card oriented and, therefore, focused on local collection efficiencies, sometimes seven days a week.
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Question 12 of 20
12. Question
Some of the biggest changes in a company’s treasury structure and cash management practices occur when:
Correct
Some of the biggest changes in a company’s treasury structure and cash management practices occur when a new treasurer is appointed.
Incorrect
Some of the biggest changes in a company’s treasury structure and cash management practices occur when a new treasurer is appointed.
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Question 13 of 20
13. Question
If the outflows and inflows are not evenly matched, what shall a cash manager do?
Correct
The outflows and inflows are not usually evenly matched. The cash manager has to manage the resulting surplus or deficit
Incorrect
The outflows and inflows are not usually evenly matched. The cash manager has to manage the resulting surplus or deficit
-
Question 14 of 20
14. Question
Select more than one answer
Identify the reasons for which direct debits can be refused by banks:Correct
Direct debits can be refused by banks for a number of reasons including:
• incorrect account details
• revocation of the direct debit mandate
• insufficient funds in the debtor account
• account closed
• amount differs from or exceeds amount authorised by the account holderIncorrect
Direct debits can be refused by banks for a number of reasons including:
• incorrect account details
• revocation of the direct debit mandate
• insufficient funds in the debtor account
• account closed
• amount differs from or exceeds amount authorised by the account holder -
Question 15 of 20
15. Question
What is the basic purpose of issuing a payment card?
Correct
Also known as P‐cards, purchasing cards or procurement cards, the use of payment cards in the corporate market has grown significantly over recent years. They are basically charge cards, issued to designated employees to be used for authorised purchases on behalf of the company.
Incorrect
Also known as P‐cards, purchasing cards or procurement cards, the use of payment cards in the corporate market has grown significantly over recent years. They are basically charge cards, issued to designated employees to be used for authorised purchases on behalf of the company.
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Question 16 of 20
16. Question
A smart card contains an embedded microchip processor that requires:
Correct
A smart card contains an embedded microchip processor that requires a special reader.
Incorrect
A smart card contains an embedded microchip processor that requires a special reader.
-
Question 17 of 20
17. Question
A debit card is used to authorise an electronic debit to the:
Correct
A debit card is used to authorise an electronic debit to the cardholder’s current account and a corresponding credit to the retailer’s account.
Incorrect
A debit card is used to authorise an electronic debit to the cardholder’s current account and a corresponding credit to the retailer’s account.
-
Question 18 of 20
18. Question
When used exclusively for employee travel and entertainment expenses, P‐cards are sometimes referred to as:
Correct
When used exclusively for employee travel and entertainment expenses, P‐cards are sometimes referred to as T & E cards.
Incorrect
When used exclusively for employee travel and entertainment expenses, P‐cards are sometimes referred to as T & E cards.
-
Question 19 of 20
19. Question
The magnetic ink character recognition line used to encode bank/branch numbers on the bottom of cheques with magnetic ink is known as:
Correct
MICR line: The magnetic ink character recognition line is the standard used to encode bank/branch numbers on the bottom of cheques with magnetic ink which is machine readable. This allows cheques to be cleared through automated systems.
Incorrect
MICR line: The magnetic ink character recognition line is the standard used to encode bank/branch numbers on the bottom of cheques with magnetic ink which is machine readable. This allows cheques to be cleared through automated systems.
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Question 20 of 20
20. Question
What are the TWO elements of managing cash management float?
Correct
Cash managers are primarily responsible for managing cash management float, which has two elements:
Disbursement float
The time lost between a payer (or payor) making a payment and the account being debited. Disbursement float results in an opportunity gain to the person disbursing.
Collection float
The time lost between a payer (or payor) making a payment and the beneficiary receiving value. Collection float results in an opportunity cost or loss to the person collecting.Incorrect
Cash managers are primarily responsible for managing cash management float, which has two elements:
Disbursement float
The time lost between a payer (or payor) making a payment and the account being debited. Disbursement float results in an opportunity gain to the person disbursing.
Collection float
The time lost between a payer (or payor) making a payment and the beneficiary receiving value. Collection float results in an opportunity cost or loss to the person collecting.
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