AFP CTP Practice Exams
Last updated on Oct 22,2026- Exam Code: CTP
- Exam Name: Certified Treasury Professional
- Certification Provider: AFP
- Latest update: Oct 22,2026
Financial risk management requires monitoring changes in which of the following?
I. Interest rates
II. Foreign exchange rates
III. Commodity prices
IV. Cost of insurance
- A . II and IV only
- B . I, II, and III only
- C . I, III, and IV only
- D . I, II, III, and IV
All of the following are basic considerations for balance compensation by a company EXCEPT:
- A . relationship management.
- B . budgeting.
- C . differential charges.
- D . annuity factors.
A company is concerned that investor dissatisfaction could lead to a rapid change in its board membership.
To prevent this, which of the following strategies should the company employ?
- A . Grant shareowners preemptive rights for new shares.
- B . Give shareowners cumulative voting rights.
- C . Stagger the election of its directors.
- D . Allow shareowners to vote by proxy.
Company XYZ is now required to make electronic payments by its suppliers. To prevent an increase in costs, the company should.
- A . negotiate a change in payment timing with its suppliers.
- B . institute a just-in-time inventory system.
- C . negotiate a change in cash disbursement with its concentration bank.
- D . institute a modified RSA system for its inventory.
What step can a cash manager take to validate a cash flow forecast?
- A . Calculate variances between actual and predicted depreciation.
- B . Test the model using data that was not used to develop it.
- C . Compare estimated sales to actual income.
- D . Compare estimated tax payments to actual payments.
A large mature company with limited growth opportunities (positive NPV projects) achieved abnormally high profits this year. After paying mandatory principal, interest, and taxes, the company has $200 million in surplus cash on hand.
Assuming its investor base is most concerned with capital appreciation, which of the following is the BEST option for the company?
- A . Declare a special dividend.
- B . Reinvest cash into the company.
- C . Declare a cash dividend.
- D . Repurchase shares of outstanding stock.
An analyst at XYZ Company was assigned with determining if the company should start to use a lockbox provider for its retail payments. The analyst determined that the company’s annual sales of $324,000,000 were recorded evenly throughout the year. The Company receives 30,000 checks annually. Total dollar-days float without the lockbox is $76,500,000 and the annual opportunity cost is 5.5%; assume 30-day month. The industry’s average opportunity cost is 6.0%.
Using the information in the table, what would be the net effect of using the lockbox?
- A . Net savings of $57,750
- B . Net savings of $63,000
- C . Net savings of $1,732,500
- D . Net savings of $1,890,000
An intern was hired by the Vice President of Accounts Payables to process the electronic payments that come through the bank. The intern is responsible for manually entering payee information into the system at each step of the process. The VP directed the intern to enter the information as fast as possible without mistakes to optimize the number of transactions that could be processed.
Instead of manually entering information the VP should have utilized:
- A . large value transfer system.
- B . straight-through processing.
- C . continuous linked settlement.
- D . enterprise resource planning system.
The purpose of cash letters is to:
- A . arrange currency deliveries from the Fed.
- B . request payment under standby letters of credit.
- C . collect merchant charge-card sales.
- D . facilitate the clearing of paper checks.
A company can use all of the following documents to establish a relationship with a bank EXCEPT:
- A . account analysis statements.
- B . account resolutions.
- C . service agreements.
- D . signature cards.