One of the PRIMARY ways the Fed addresses systemic risk is by:

• A.setting daylight overdraft limits for its member banks.
• B.setting minimum reserve requirements for its member banks.
• C.assigning passwords and PINs to identify authorized users of its Fedwire system.
• D.establishing intra-day credit limits for ACH originators.

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A major toy retailer operates 65 stores throughout the Midwest. Which of the following collection methods is MOST LIKELY to be used by this company?

• A.Preauthorized debit
• B.Direct deposit
• C.Wholesale lockbox
• D.Field deposit

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Which of the following are basic security issues to be considered in evaluating a treasury management system?
I. Data recovery
II. Anti-virus protection
III. Database access controls
IV. Data integration

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

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A high-yield, non-investment-grade security is commonly referred to as which of the following?

• A.An equity warrant
• B.A junk bond
• C.An industrial revenue bond
• D.A convertible bond

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Company A has operated a Pension Plan since 1985. Despite a recent surge in asset
values, the plan remains significantly underfunded. With the passage of the Pension Protection Act of 2006, Company A will be need to:

• A.increase long-term investments.
• B.take no action.
• C.pay higher PBGC premiums.
• D.liquidate long-term investments.

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