The risk that one financial institution's failure could lead to the failure of other financial institutions is known as:

• A.credit risk.
• B.settlement risk.
• C.systemic risk.
• D.fraud risk.

Comment: *

Name: *

Email: *

Verification: *

Economists are forecasting a rise in gas prices within the next 3 months. Charged with the task of establishing a risk mitigation approach for the company, the CRO has determined that the company has considerable exposure to fluctuations in gas prices. In coming to this conclusion, the CRO:

• A.made a qualitative assessment.
• B.made a quantitative assessment.
• C.examined basic operating procedures.
• D.assessed financial derivatives.

Comment: *

Name: *

Email: *

Verification: *

Which of the following functions is LEAST likely to be part of a cash manager's responsibilities?

• A.Long-term financing
• B.Forecasting
• C.Funds movement
• D.Bank compensation

Comment: *

Name: *

Email: *

Verification: *

Why would a company establish a short-term credit facility?

• A.Cash shortages are being forecasted due to seasonality.
• B.There is an anticipated failure of the company's main depository bank.
• C.Short-term interest rates are expected to rise.
• D.The company would like to improve bank relationships.

Comment: *

Name: *

Email: *

Verification: *

Which of the following instruments simplifies the paperwork connected with loans that have multiple advance features?

• A.Banker's acceptance
• B.Indenture agreement
• C.Master note
• D.Note purchase agreement

Comment: *

Name: *

Email: *

Verification: *