AFP CTP Practice Exams
Last updated on Oct 23,2026- Exam Code: CTP
- Exam Name: Certified Treasury Professional
- Certification Provider: AFP
- Latest update: Oct 23,2026
Convertible securities consist of preferred stock anD.
- A . treasury stock.
- B . common stock.
- C . bonds.
- D . tracking stock.
Which one of the following ties a user’s private key to a user’s public key?
- A . A digital signature
- B . A digital certificate
- C . A digitized signature
- D . A digital token
A manufacturing company’s long-term capital structure is 30% debt and 70% equity, its cost of equity is 10%, its average cost of debt is 8%, and the marginal tax rate is 34%.
If the company has invested total capital of $567,865 in its production unit and the unit’s operating profit is $79,856, what is the economic value added (EVA) of the unit?
- A . ($674.35)
- B . $3,982.14
- C . $5,412.56
- D . $6,571.78
A company with constant earnings and excess cash is considering a significant stock repurchase plan.
Which of the following is MOST LIKELY to occur?
- A . Earnings per share will increase, and the number of shares outstanding will stay constant.
- B . Earnings per share will decrease, and the number of shares outstanding will increase.
- C . Earnings per share will increase, and the number of shares outstanding will decrease.
- D . Earnings per share will decrease, and the number of shares outstanding will stay constant.
A company has negotiated a credit facility with the following terms:
$5,000,000 line of credit
$3,000,000 average borrowing
30 basis point commitment fee on unused portion of line Interest rate on advances is 1-month LIBOR plus 4% 1-month LIBOR is currently 2%
Compensating balance requirement of 20% on the outstanding borrowings
What is the effective annual borrowing rate for the line of credit?
- A . 6.0%
- B . 6.2%
- C . 7.8%
- D . 9.3%
West Coast Retail Shop has experienced reduced cash availability in its bank account since a new store manager was hired. The manager is responsible for manually preparing daily bank deposits, which generally include a large number of checks, for processing at a bank branch in the same shopping mall as the store.
Which of the following should West Coast Retail Shop implement to improve the available balance in its bank account?
- A . A Point-of-Purchase check conversion process
- B . An Image Replacement Document conversion process
- C . Transit check clearing
- D . A direct exchange with local banks
One of the KEY risks associated with a company’s use of financial institutions is the possibility that:
- A . frequent account management turnover at an institution will disrupt the company’s operations.
- B . an institution’s operations will put the company in violation of the Gramm-Leach-Bliley Act.
- C . an institution will inadvertently share the company’s confidential data with its competitors.
- D . the institution will fail, which will have a financial impact on the company.
Equity section of Fisher, Inc. Financial Statement
If an investor paid $1,400.00 (excluding fees) for 75 shares of common stock, what was the market value of Fisher, Inc. at the time of purchase?
- A . 15.50
- B . 15.76
- C . 16.97
- D . 18.67
Loss exposures related to treasury management may include which of the following?
- A . Excessive product recalls
- B . PBGC violations
- C . Deterioration of investment principal
- D . Bank consolidations
With the advent of the euro, many U.S. companies have seen a reduction in their number of foreign currency transactions.
As a result, these U.S. companies have benefited from which of the following?
I. Reduced FX transaction costs
II. Consolidated banking relationships
III. Simplified exchange risk management
IV. Reduced need to monitor foreign political climates
- A . I and II
- B . II and III
- C . I, III, and IV
- D . I, II, and III