ABC Company, a publicly held U.S. multinational, owns several manufacturing plants in Latin America as well as several ships to transport its products globally. 60% of its sales are from its euro-based subsidiaries. The company uses various derivative instruments to mitigate exposure to fluctuations in fuel prices and FX rates. The hedging deals are long-term and placed with many counterparties. ABC Company is also a net borrower and has a syndicated credit facility in place. Which of the following actions to mitigate counterparty risk would MOST benefit the company?

• A.Add to the number of counterparties to increase diversification.
• B.Eliminate specific AAA rated counterparties.
• C.Implement or adjust single counterparty balance limits.
• D.Adopt a third-party custodian for investments.

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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

• A.I and III
• B.II and IV
• C.I, II, and IV
• D.II, III, and IV

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When using the Internet to access auction markets, companies may use certificate authorities to reduce their exposure to which of the following types of risk?

• A.Credit
• B.Valuation
• C.Counterparty
• D.Foreign exchange

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The PRIMARY goal of treasury management is to use which of the following efficiently?

• A.Net income
• B.Equity
• C.Cash
• D.Payment methods

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Financial statement preparation guidelines are provided by:

• A.FATF.
• B.FASB.
• C.FDIC.
• D.FOMC.

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