AFP CTP Practice Exams
Last updated on Oct 24,2026- Exam Code: CTP
- Exam Name: Certified Treasury Professional
- Certification Provider: AFP
- Latest update: Oct 24,2026
Companies in the U.S. with a nationwide over-the-counter/field bank collection and concentration system often deal with:
- A . few small financial institutions.
- B . one major banking institution with branch offices at all locations.
- C . many small financial institutions.
- D . one major bank with corresponding relationships.
A company has a $300,000 credit line of which $200,000 was the average amount outstanding for the year. The terms of the loan include a 1/2 of 1% commitment fee on the unused portion, an interest rate of 10%, and a compensating balance requirement of 2% of the total credit line. The company’s compensating balances are funded from credit-line borrowings.
If the company negotiates to eliminate the compensating balance requirement and the average borrowings remain at $200,000, the annual interest rate would be:
- A . 10.00%.
- B . 10.25%.
- C . 10.31%.
- D . 10.57%.
XYZ Corporation uses ABC Bank for their lending and treasury management. In addition, the bank serves as bond trustee for XYZ Corp. If XYZ Corp. becomes distressed, this relationship could create a conflict of interest for the financial institution.
What barrier prevents a financial institution from sharing confidential information between divisions?
- A . Chinese wall
- B . Counterparty risk
- C . Non-disclosure agreement
- D . Sarbanes-Oxley controls
Treasury management systems help cash managers do which of the following?
I. Reduce borrowing expenses
II. Initiate transfers
III. Determine cash position
IV. Obtain account balances
- A . I and IV
- B . II and III
- C . I, III, and IV
- D . I, II, III, and IV
A company can dispute any check alterations within how many days after the bank statement has been sent?
- A . 30 days
- B . 60 days
- C . 90 days
- D . 180 days
A North American service company has autonomous offices in different geographic regions each handling their own sales and accounts receivables deposits to local banks which primarily consist of checks.
By implementing a lockbox collection system, what objective in its collection policy would it have met?
- A . Payment float
- B . Cost efficiency
- C . Segregation of duties
- D . Customer satisfaction
Which statement is true about private placements compared to public offerings?
- A . They take more time to complete.
- B . They reduce issuance costs.
- C . They have more restrictive covenants.
- D . They have lower interest rates.
An institutional investor has purchased an investment that provides a fixed rate of return with some potential for delays in payments. The return is 70% tax deductible for this particular investor.
What type of investment was MOST LIKELY purchased?
- A . Common stock
- B . Sinking fund debenture
- C . Preferred stock
- D . Bonds with warrants
Which of the following factors will allow a company to decrease the amount of collected balances required to compensate its bank for services?
- A . An increase in the bank’s earnings credit rate
- B . An increase in the bank’s reserve requirement
- C . An increase in FDIC insurance charges
- D . A carry-over of a prior period’s deficient balance
A public corporation may value a defined contribution plan highly because it:
- A . allows the corporation to capture plan investment surpluses.
- B . allows proxy voting in favor of management.
- C . shifts investment shortfall risk to employees.
- D . defines allowed investments within the plan.