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
In an organization with personnel limitations, which of the following strategies should be considered to mitigate cash management system risk?
- A . Outsourcing
- B . Verification
- C . Matching
- D . Hedging
A company’s Chief Financial Officer assigns a team reporting to the Treasurer to restructure the company’s complex debt instruments and equipment leasing arrangements. The team executes the required settlement transactions using wire payments to facilitate the new debt structure, and in the process violates the lending requirements of the company’s bank.
What should the Treasurer have done to prevent the violation?
- A . Set up an exception management process.
- B . Established covenant monitoring and compliance controls.
- C . Restricted access to the company’s payment processing system.
- D . Segregated the team’s duties for the debt structuring and transaction activities.
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 the unused portion of the line Interest rate on advances is 1-month LIBOR plus 4%
1-month LIBOR is currently 2%
What is the annual interest rate on the line of credit?
- A . 6.0%
- B . 6.2%
- C . 9.0%
- D . 9.3%
Which of the following can be exercised only on the expiration date?
- A . American options
- B . European options
- C . Commodity swaps
- D . Basis swaps
Which of the following is MOST LIKELY to have a significant impact on the financial condition of an organization?
- A . Defined benefit pension plans
- B . Defined contribution pension plans
- C . 401(k) plans
- D . Tax-deferred annuities
All of the following bank products and services can simplify the preparation of the daily cash position
EXCEPT:
- A . ACH concentration.
- B . balance reporting.
- C . account analysis.
- D . controlled disbursement.
A treasurer overhears several employees talking about selling their company stock before a pending deal impacts the stock negatively.
What action should the treasurer take to control this behavior in the future?
- A . Report the employees to the SEC.
- B . Provide training on ethics and code of conduct.
- C . Contact the investor relations department.
- D . Contact the internal and external auditors.
In predicting collections from credit sales, a cash manager can obtain prior period information from which of the following sources?
I. Customer payment histories
II. The company’s concentration bank
III. The accounts receivable department
IV. The accounts payable department
- A . I and II only
- B . III and IV only
- C . I and III only
- D . I, III, and IV only
In predicting collections from credit sales, a cash manager can obtain prior period information from which of the following sources?
I. Customer payment histories
II. The company’s concentration bank
III. The accounts receivable department
IV. The accounts payable department
- A . I and II only
- B . III and IV only
- C . I and III only
- D . I, III, and IV only
While revising the investment policy, the CFO performs a sensitivity analysis for the company’s cash flow from investments, and identifies that increasing the maximum dollar value for bond purchases will improve returns by 10% on average, all other variables being equal.
What issue will the CFO now need to address in the investment policy?
- A . Exception management
- B . Valuation of investments
- C . Internal and external controls
- D . Performance management and reporting