A treasury employee of Company XYZ is privy to financial reporting information yet to be released to the public. He knows that year-end earnings exceed last year's and would be viewed as positive to the investment community. He casually mentions to a relative that now would be a good time to buy the stock of Company XYZ. Which section of the treasury code of ethics would typically be violated by such a disclosure?

• A.Conflict of interest
• B.Employee conduct
• C.External activities
• D.Confidential information

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Which two of the following are optimal uses for short-term excess cash?
I) Pay down credit lines.
II) Make overnight investments.
III) Repurchase stock.
IV) Make capital expenditures.

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

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A UK based manufacturer has a subsidiary in Belgium and a manufacturing plant in Italy. The subsidiary wants to sell its products in Sweden. How would the UK parent best structure the movement of funds within the organization to optimize management of working capital while ensuring recourse?

• A.Re-invoicing
• B.Multilateral netting
• C.Internal factoring
• D.Export financing

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U.S.-based manufacturing Company XYZ is looking to deliver finished goods to ABC Company in a developing nation. The credit department wants to ensure collectability and has asked the treasury department for guidance. The desired solution may impact days sales' outstanding but will have the lowest credit risk to Company XYZ. What will treasury recommend?

• A.Extended trade terms
• B.A consignment agreement
• C.A standby letter of credit
• D.A draft/bill of lading

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Which of the following is generally NOT a benefit of financial risk management?

• A.Greater predictability of future cash flows
• B.Enhanced borrowing advantage in credit markets
• C.The opportunity to take advantage of market inefficiencies
• D.The likelihood of financial distress decreases

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