Using a digital certificate when accessing a financial services provider is one way to reduce what kind of risk?

• A.Compliance risk
• B.Reputational risk
• C.Counterparty risk
• D.Process risk

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Which of the following prohibits price discrimination among customers where cost differences do NOT exist?

• A.Equal Credit Opportunity Act
• B.Truth in Lending Act
• C.Fair Credit Billing Act
• D.Robinson Patman Act

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Which of the following functions is LEAST likely to be part of a cash manager's responsibilities?

• A.Long-term financing
• B.Funds movement
• C.Forecasting
• D.Bank compensation

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BF Company, a manufacturer of food products, reported financial information shown in the table below for the end of the year.

BF Company is subject to covenants under its revolving credit facility. It is in compliance with which of the following?

• A.Dividends cannot exceed 15% of retained earnings
• B.Maximum debt to tangible net worth ratio of 1.5:1
• C.Minimum current ratio of 1.25:1.0
• D.Minimum times interest earned of 3.0 times

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A disbursement check was intercepted in the mail, fraudulently altered, and subsequently cashed for $1,000 more than it had been written. The fraud was not detected until two months later, when the vendor phoned about late payment. Which of the following could have detected the fraud sooner?

• A.Using the services of a lockbox
• B.Requiring strict internal controls over the vendor master
• C.Adding debit blocks on the disbursement account
• D.Performing daily reconciliation of the disbursement account

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