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
Which of the following are interest-bearing instruments?
I. Certificates of deposit
II. Treasury bills
III. Treasury notes
IV. Banker’s acceptances
- A . I and III only
- B . I and IV only
- C . I, III, and IV only
- D . II, III, and IV only
A company has multiple wholly-owned subsidiaries that issue their own checks which are signed by head office staff. The company decides to move to electronic payments using their bank’s internet-based payment systems to reduce costs. Payments are now initiated by the subsidiaries.
What element of the payment policy should be considered if the company still wants to maintain head office control over payments?
- A . Risk mitigation
- B . Objectives and scope
- C . Roles and responsibilities
- D . Performance measurement and reporting
A utility company is evaluating whether or not it should build a new plant.
The process of reviewing the quantitative and qualitative factors are an example of which finance function?
- A . Capital budgeting
- B . Funding
- C . Financial planning
- D . Financial risk management
Company A anticipates the following cash inflows and outflows for the next three months:
If the company’s treasurer is preparing a cash-flow projection for Month 2, and he is focusing purely on items that can be projected with a fair degree of certainty, what will the net projection be?
- A . ($119,000)
- B . ($104,000)
- C . $131,000
- D . $146,000
A measure of the incremental impact of a company’s investments on market capitalization is known as:
- A . weighted average cost of capital.
- B . economic value added.
- C . return on equity.
- D . working capital turnover.
Which of the following is an important component of corporate governance?
- A . The existence of a large number of institutional investors
- B . The activities of independent outside auditors
- C . The existence of a matrix management structure
- D . The level of compliance with GAAP
If a company uses accrual accounting, deferred taxes are reported on which financial statement?
- A . Statement of cash flows
- B . Balance sheet
- C . Income statement
- D . Statement of changes in retained earnings
A company has large, ongoing short-term financing requirements with a maximum horizon of 250 days. It has a good credit rating and would like to use the least expensive source of short-term debt to finance its needs.
The Treasurer might recommend which of the following?
- A . Commercial paper with a backup line of credit
- B . Asset sales through factoring of receivables
- C . A committed line of credit with compensating balances
- D . A single payment note secured by marketable securities
A lockbox provider offers which of the following advantages over a company processing center?
I. It increases the company’s operational control.
II. It produces processing economies of scale.
III. It allows for external audit controls.
IV. It reduces collection float.
- A . I only
- B . II and III only
- C . I, II, and III only
- D . II, III, and IV only
One of the PRIMARY ways the Fed addresses systemic risk is by:
- A . assigning passwords and PINs to identify authorized users of its Fedwire system.
- B . establishing intra-day credit limits for ACH originators.
- C . setting minimum reserve requirements for its member banks.
- D . setting daylight overdraft limits for its member banks.