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
An analyst at XYZ United is in charge of setting up the bank accounts. Fraud is a major concern due to the analyst’s past experience with previous employers. The analyst has estimated that the company will earn 3.7% on surplus cash. Surplus cash must be invested in short-term investment grade investments. The company’s closest competitor earned 4.1% for its surplus cash in its latest fiscal year.
What bank service should the analyst use to maximize the company’s surplus cash?
- A . Payable Through Draft
- B . Reverse Positive Pay
- C . Zero Balance Account
- D . Controlled Disbursement
A treasurer decides to use notional pooling across wholly-owned multiple legal entities instead of wiring money between entity accounts.
What specific section in the company’s policy allowed the treasurer to make this decision?
- A . Regulatory and legal considerations
- B . Liquidity strategy
- C . Collection strategy
- D . Concentration practices and strategies
Which of the following is NOT a drawback to using ROI as a performance measure?
- A . It may be misleading when cash flows are not evenly distributed over time.
- B . It does not consider the profit generated by a project.
- C . It does not include a charge for cost of capital.
- D . It may lead to rejection of a positive NPV project.
The “agency problem” refers to:
- A . management’s use of a fiduciary agent for stockholders.
- B . a large and active institutional investor base acting on behalf of individual investors.
- C . stockholders who allow management to take actions that will benefit management.
- D . the internal audit function reporting to the audit committee of the board instead of to management.
All of the following are objectives of credit management EXCEPT:
- A . evaluating customer creditworthiness.
- B . preparing cash flow forecasts.
- C . maintaining up-to-date records of accounts receivable.
- D . initiating collection procedures.
A company has decided to manage its short-term investment portfolio in-house. It is looking for enhanced capital gains as well as the ability to sell the instruments on the secondary market at a premium.
The investment manager has forecasted the interest rates shown below:
Which investment strategy should be employed by the company?
- A . Passive strategy
- B . Matching strategy
- C . Tax-based strategy
- D . Total-return strategy
Investors typically require a higher yield as compensation for holding securities that have:
- A . less marketability.
- B . low default risk.
- C . shorter maturity.
- D . tax exempt status.
Investors typically require a higher yield as compensation for holding securities that have:
- A . less marketability.
- B . low default risk.
- C . shorter maturity.
- D . tax exempt status.
Which of the following would be expected to happen on the ex-dividend date?
- A . The stock is sold with the dividend attached.
- B . The stock price drops.
- C . The stock’s volume increases.
- D . The stock’s dividend is paid.
Included in the CAMELS rating system for financial institutions are all of the following EXCEPT:
- A . credit rating.
- B . earnings.
- C . asset quality.
- D . liquidity.