RAL Capital, a lean global financial service provider with revenues of $8 billion, has 10 regional offices located around the world. The RAL global trading groups are structured as profit centers with each center having its own profitability targets. The group's clients consist of large multinational corporations and financial institutions that require the buying and selling of large amounts of currency. The Treasurer is considering reorganizing his department into a profit center. The group processes millions of transactions every year. What is a downside of this scenario?

• A.May become a viable candidate for downsizing or outsourcing.
• B.Pressure to produce significant profits may lead to deferred losses and inefficient operations.
• C.Substantial headcount is required to support a profit generation center.
• D.Need to decentralize treasury operations in order to make a profit center more viable.

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The time between receipt of a mailed payment and the deposit of the payment in the payee's account is known as:

• A.mail float.
• B.processing float.
• C.availability float.
• D.collection float.

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The combination of difference in condition (DIC) insurance and umbrella insurance:

• A.replaces the coverage provided by basic property and liability insurance.
• B.supplements the coverage provided by basic property and liability insurance.
• C.provides payments to a company in the event it is unable to pursue a line of business
  due to an unforeseen event.
• D.transfers risk to a company's captive insurance subsidiary.

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Which of the following occurs when the U.S. dollar strengthens?

• A.U.S. exports become more competitive.
• B.Foreign exports become more competitive.
• C.Foreign exports become less competitive.
• D.Foreigners will purchase more U.S. goods.

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All of the following are common consumer-to-corporate international payment mechanisms EXCEPT:

• A.giros.
• B.smart cards.
• C.CHIPS.
• D.debit cards.

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