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
The stock of a manufacturing company is priced so that its expected rate of return is below its required rate, as calculated by the Capital Asset Pricing Model (CAPM).
Which of the following will occur in an efficient capital market?
- A . Buying pressure for the firm’s stock will drive the price up.
- B . Buying pressure for the firm’s stock will drive the price down.
- C . Selling pressure for the firm’s stock will drive the price up.
- D . Selling pressure for the firm’s stock will drive the price down.
The stock of a manufacturing company is priced so that its expected rate of return is below its required rate, as calculated by the Capital Asset Pricing Model (CAPM).
Which of the following will occur in an efficient capital market?
- A . Buying pressure for the firm’s stock will drive the price up.
- B . Buying pressure for the firm’s stock will drive the price down.
- C . Selling pressure for the firm’s stock will drive the price up.
- D . Selling pressure for the firm’s stock will drive the price down.
An investor is interested in acquiring ownership in a firm while ensuring predictable timing and amount of cash flow.
Which instrument should the investor choose?
- A . Bonds
- B . Commercial paper
- C . Common stock
- D . Preferred stock
Which of the following is a typical overnight use of excess cash?
- A . Entering into a repurchase agreement
- B . Investing in Dutch auction preferred stock
- C . Purchasing a Treasury bill
- D . Purchasing a certificate of deposit
Which of the following services allows a single account to be used by a company with multiple units?
- A . Payor bank services
- B . Check inquiry
- C . Positive pay
- D . High-order prefix
In developing an operating budget, the first and MOST critical step is?
- A . Get management approval.
- B . Generate a sales budget.
- C . Establish cost allocations.
- D . Determine capital structure.
Establishing the authority to open bank accounts is the responsibility of:
- A . the board of directors.
- B . the CFO.
- C . the treasurer.
- D . the board of governors.
In this situation, the net earnings credit amount for the month would show:
- A . a deficiency of $1,725.
- B . an excess of $1,425.
- C . an excess of $1,850.
- D . an excess of $2,100.
The following information about a company is at the end of its fiscal year.
The before-tax cost of long-term debt is 10% and the cost of equity is 12%.
The marginal tax rate is 35%. The company’s current ratio is:
- A . 0.46.
- B . 0.59.
- C . 0.93.
- D . 1.37.
When a project has an initial cash outflow with cash inflows in subsequent years, what decision model is most applicable to use to evaluate the adequacy of the project?
- A . Monte Carlo
- B . Net present value
- C . Payback period
- D . Profitability index