A company expects the U.S. dollar to depreciate in value compared to the British pound. The company will have a British pound payment to make in five months. The company would MOST LIKELY buy:

• A.a U.S. dollar put.
• B.a British pound call.
• C.a British pound put.
• D.a U.S. dollar call.

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Which of the following investment instruments would provide a company with the greatest liquidity and least risk?

• A.Certificate of participation
• B.Treasury bill
• C.Commercial paper
• D.Certificate of deposit

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All of the following items may be found on an income statement EXCEPT:

• A.prepaid expenses.
• B.cost of goods sold.
• C.taxes.
• D.interest expense.

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CT Check Cashing routinely cashes payroll checks from JD Software. Someone presents a fraudulent check from JD Software to CT Check Cashing. The fraudulent item looks virtually identical to JD Software's regular payroll checks. CT Check Cashing pays the person cashing the check the amount for which it is issued. CT Check Cashing later discovers that the check was fraudulent and wants JD Software to reimburse them for the amount of the check. Which of the following statements is correct?

• A.JD Software has a controlled disbursement account so CT Check Cashing will not have recourse against JD Software for this item.
• B.Fraudulent endorsement has occurred and JD Software will not be held liable for this item.
• C.Positive pay is designed to reject the item, but JD Software may ultimately be held liable if CT Check Cashing is deemed to be a holder in due course.
• D.This item is payable through draft so JD Software will be liable to CT Check Cashing for the amount of the check.

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Which of the following is an advantage of a centralized treasury function?

• A.Policy setting is determined by local offices.
• B.It optimizes risk and portfolio management.
• C.It reduces subsidiary interaction.
• D.Regional offices are responsible for disbursements.

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