A company has grown quickly in the euro zone market. It wants to maximize its excess cash. Which would be the BEST method of concentrating funds?

• A.Physical Pooling
• B.Scheduled Transfer
• C.Bank Overlay
• D.Notional Pooling

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Bank A is to pay Bank B $6,000,000 for 10 transactions that occurred throughout the day. Bank B is to pay Bank C $8,000,000 for 13 transactions that occurred throughout the day. Bank B is to pay Bank A $5,000,000 for 17 transactions that occurred throughout the same day. These banks operate using a gross settlement system. How many transactions will
occur between these banks to settle the payments?

• A.2
• B.30
• C.40
• D.3

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

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

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A company's basic investment objectives should include all of the following EXCEPT:

• A.maximizing exposure.
• B.optimizing returns.
• C.ensuring liquidity.
• D.minimizing risk.

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The PRIMARY difference between defined benefit and defined contribution pension plans is whether the employee or the employer:

• A.decides which mutual funds are included in the plan.
• B.bears risk of a shortfall of the investment results in the plan.
• C.receives the tax reduction benefits of the plan.
• D.hires investment managers for the plan.

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