Which agency implements monetary policy through purchases and sales of treasury securities?

• A.Fannie Mae
• B.Federal Deposit Insurance Corporation
• C.Office of the Comptroller of the Currency
• D.Federal Reserve

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A United States company must remit a dollar royalty payment to its Japanese subsidiary. Cash settlement of the payment would typically be made by which of the following?

• A.Giro system
• B.SWIFT
• C.ACH
• D.CHIPS

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A company has entered into a loan syndication agreement with four banks. The agreement states the company must maintain certain covenants, and a breach of any covenant will terminate the loan immediately. What is the BEST course of action for the treasurer?

• A.Ensure an accurate cash forecast.
• B.Adopt electronic payment methods.
• C.Ensure segregation of duties.
• D.Implement safekeeping for securities.

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The MICR encoding on a check provides all of the following information EXCEPT:

• A.the dollar amount of the check.
• B.the payor's bank account number.
• C.the Fed district of the drawee bank.
• D.the payee bank's institutional identification number.

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All of the following are differences between Fedwire and ACH EXCEPT:

• A.ACH items have no credit risk.
• B.ACH transactions have delayed settlement.
• C.ACH per item transaction costs are less.
• D.ACH transactions involve more consumer payments.

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