Important AFP CTP Exam Questions

A merchant has a chargeback rate of 0.03% on average daily sales of $200,000. After switching to a new merchant acquirer that is a bank, the merchant sees the rate increase to 0.05% or $10,000. The merchant's analysis reveals that the bank maintains its data warehouse in another country where the system network is routinely hacked. What act or standard is being violated?

A pizza restaurant chain maintains separate accounts at bank branches near each of their 1,067 restaurants to handle the deposit of cash received. Early each morning, the company's point-of-sale system electronically transmits collection totals from the previous day to its main computer. ACH debits are then initiated to concentrate the funds from the local accounts to the concentration account the following day. Recently, several of the ACH debits have been returned for insufficient funds because deposits weren't being taken to the bank on a timely basis by the local employees. Without increasing staff at the restaurants, what could Treasury do to prevent this from happening and avoid overdrafts at the local banks?

Which currency will sell at the greatest discount in the forward market against the U.S. dollar?

A company pays its vendors with the following methods:

2,600 checks, averaging $1,000 each, issued on the 15th of the month

1,000 ACH payments, averaging $2,000 each, on Wednesdays

500 ACH payments, averaging $500 each, on the first Monday of the month

10 wires on the last day of the month for approximately $260,000 each

If the company has a daylight overdraft agreement, which of the above presents the highest single-day credit risk for the bank if the company enters bankruptcy?

Underfunded pension obligations can be reduced by: