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
RAL Capital, a lean global financial service provider with revenues of $8 billion, has 10 regional offices located around the world. The RAL global trading groups are structured as profit centers with each center having its own profitability targets. The group’s clients consist of large multinational corporations and financial institutions that require the buying and selling of large amounts of currency. The Treasurer is considering reorganizing his department into a profit center. The group processes millions of transactions every year.
What is a downside of this scenario?
- A . May become a viable candidate for downsizing or outsourcing.
- B . Need to decentralize treasury operations in order to make a profit center more viable.
- C . Substantial headcount is required to support a profit generation center.
- D . Pressure to produce significant profits may lead to deferred losses and inefficient operations.
ABC Company is a net borrower with a weighted average cost of capital of 11.5%.
What kind of bank fee arrangement is it likely to prefer?
- A . Fee compensation
- B . Balance compensation
- C . Average balance compensation
- D . Average fee compensation
Capital budgeting is defined as the:
- A . determination of the optimal level of debt versus equity.
- B . process of evaluating alternative investment projects.
- C . provision of sufficient borrowing facilities to meet transaction requirements.
- D . addition of capital to the firm which results in a cash inflow.
Capital budgeting is defined as the:
- A . determination of the optimal level of debt versus equity.
- B . process of evaluating alternative investment projects.
- C . provision of sufficient borrowing facilities to meet transaction requirements.
- D . addition of capital to the firm which results in a cash inflow.
A multinational company (MNC) that operates a shared service center charges its foreign subsidiaries a management fee.
This management fee may need to be:
- A . manipulated to locate profits in low-tax countries.
- B . paid through a third-party intermediary.
- C . negotiated with the host government.
- D . significantly taxed by the host government.
From a buyer’s perspective, which of the following types of float would be eliminated if checks were replaced by electronic payment methods?
- A . Collection
- B . Invoicing
- C . Disbursement
- D . Lockbox
Which of the following payment types is at the greatest risk for fraud?
- A . Wire transfers
- B . Credit cards
- C . Checks
- D . ACHs
A cash manager has determined that the break-even amount for justifying a wire transfer over an ACH for concentration of funds is $145,000. Using a wire instead of an ACH gives the company use of the funds two days earlier to make overnight investments.
Based on a wire transfer cost of $10.00 and an ACH transaction cost of $0.70, what is the company’s overnight investment interest rate on a 365-day year basis?
- A . 0.95%
- B . 1.17%
- C . 2.34%
- D . 2.57%
A company in a distressed financial condition may choose to use which of the following services to entice suppliers to continue to sell to it on open terms?
- A . Bankers’ acceptance
- B . Documentary collection
- C . Standby letter of credit
- D . Corporate trust