Question 1

Company XYZ had the following sales over the last 5 years:

Magento-Certified-Professional-Cloud-Developer

The company raised funds to invest in its operations. Considering the company’s growth, it is interested in future options that will allow it to maintain its debt level and keep debt costs low. The company is not concerned about changes to the working capital structure. Which security did the company issue?

Options :

A : Unsecured bond

B : Bond with an equity kicker

C : Zero-coupon bond

D : Convertible security

Answer: B

Question 2

Which of the following is LEAST likely to appear on an account analysis?

Options :

A : Service charges

B : Average float balance

C : Earnings allowance rate

D : Money market rate

Answer: D

Question 3

A multinational corporation with many FSPs requires a TMS that can display extensive and complex information in an effective manner. The corporation will be looking for a TMS with what functionality?

Options :

A : Bank administration

B : Dashboards

C : Data integration

D : Modularity

Answer: B

Question 4

A U.S. company has a secured committed line of credit of $5 million. The company successfully transmitted a $5.5 million wire transfer instruction out to the bank. The bank contacted the company and informed it that the wire transfer would not be processed. What is the MOST LIKELY reason the bank gave the company?

Options :

A : The company overdraft facility was sufficient.

B : The bank imposed a guidance line of credit on the account.

C : The company reached its maximum limit on the committed line.

D : The bank refused funding on the company’s discretionary line of credit.

Answer: B

Question 5

An analyst at Davis Company uses the tax payment (TXP) banking convention for payment of state taxes. The analyst is preparing to pay $650,000 in taxes to the state where Davis Company is domiciled. What payment method will the analyst use to make the tax payment?

Options :

A : ACH Credit

B : Fedwire Credit

C : Certified Check

D : Multiple Drawee Check

Answer: A