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
Which of the following is a benefit to a company that publicly trades its stock?
- A . It passes public disclosure requirements to shareholders.
- B . It reduces management and shareholder conflicts.
- C . It allows management holding a majority ownership to have control.
- D . Its stock price reflects the value of the company in the market.
The yield on any short-term investment instrument is a function of the maturity or holding period, the amount paid and:
- A . the cash flows received.
- B . the money market yield.
- C . the after-tax yield.
- D . the issuing price.
A properly designed concentration system will potentially achieve which of the following results?
I. Increased authority to field offices
II. Increased investment income
III. Improved ability to take discounts
IV. Reduced dependence on third-party concentration vendors
- A . IV only
- B . I and II only
- C . II and III only
- D . II, III, and IV only
The principal roles of corporate finance include which one of the following combination of functions?
- A . Maintaining liquidity and optimizing cash
- B . Capital budgeting and financial risk management
- C . Establishing credit terms and collection policies
- D . Shareholder relations and dividend decisions
In terms of targeting a company’s capital structure, when is it beneficial to assume a high level of financial risk?
- A . When the economy is rapidly expanding
- B . When the economy is experiencing slow growth
- C . When the company is experiencing growth
- D . When the rate of return on investments is advantageous
To arrive at the closing cash position, a cash manager must add the expected settlements in the collection and concentration accounts and deduct the projected disbursement totals from the:
- A . opening available balance.
- B . closing ledger balance.
- C . opening ledger balance.
- D . closing investment account balance.
Financial ratios may provide an inaccurate forecast of a company’s performance because they are:
- A . difficult to incorporate into statistical forecasting.
- B . economic rather than accounting values.
- C . sensitive to seasonal cash flows.
- D . based on snapshots of the company’s activity.
Each of the following statements is true of both defined benefit plans and defined contribution plans EXCEPT:
- A . both of the plans are typically structured as single-employer plans and maintained for employees.
- B . both can be classified as overfunded or underfunded depending on the value of plan assets.
- C . the treasurer is normally responsible for overseeing the performance of the plan fund managers.
- D . the Pension Protection Act of 2006 includes significant changes to the rules governing both types of plans.
Underfunded pension obligations can be reduced by:
- A . an upward shift in the yield curve.
- B . higher benefit payments to retirees.
- C . immediate vesting in the defined contribution plan.
- D . higher premiums to the Pension Benefit Guaranty Corporation.
A company with $50 million in foreign assets decides to increase its foreign debt by $40 million for a debt ratio of 80%.
This action will reduce which exposure?
- A . Hedged
- B . Economic
- C . Transaction
- D . Translation