Banks often control information flow, records and assets, therefore it is critical that banks have:

• A.standard formats for electronic submission.
• B.controlled disbursement procedures.
• C.timetables for service implementation.
• D.backup systems and disaster recovery procedures.

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A company's credit agreements or loan covenants may require:

• A.high deductible levels and risk retention in order to minimize premium payments.
• B.outsourcing of the claims approval and payment process to an insurance company.
• C.minimum ratings for insurance carriers.
• D.risk management staff to work directly with underwriters to reduce commission
  payments.

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Company XYZ uses exponential smoothing to forecast its daily lockbox receipts. With the help of a statistical computer program, the company has determined that the smoothing constant is 0.35.

Using the data in the table, what is the exponential smoothing forecast for Day 7 (rounded to the nearest whole $)?

• A.$27,790
• B.$26,600
• C.$27,167
• D.$28,810

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Company XYZ is not sure which direction interest rates are headed. Which of the following would be MOST suitable?

• A.An interest rate floor
• B.An interest rate swap
• C.An interest rate cap
• D.An interest rate collar

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U.S.
dollar-denominated instruments issued by foreign banks through their domestic branches are known as:

• A.Yankee CDs.
• B.Eurodollar CDs.
• C.banker's acceptances.
• D.Eurocommercial paper.

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