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
A seller’s cost of capital is 12%. The average credit sale is $200,000, and the credit terms are 2/10, net 30.
What is the present value of receiving full payment on day 30?
- A . $198,019.80
- B . $198,046.66
- C . $199,335.55
- D . $199,344.62
If a bank has a 10% reserve requirement, a 31-day month, and an earnings credit rate of 6.5%, which of the following is the approximate level of collected balances required to support $1.00 worth of bank service charges?
- A . $181
- B . $199
- C . $201
- D . $206
Which of the following statements BEST applies when evaluating fees in an RFP for bank services?
- A . Flexible credit terms are the most important consideration.
- B . Ability of financial institution to customize services is critical.
- C . A proforma account analysis statement captures all pricing and compensation detail.
- D . Accurate evaluation and comparison of the proforma account analysis statements are critical.
A telecommunications company has decided to sell its call center hosting division.
This is an example of what type of financial decision?
- A . Capital structure
- B . Financing
- C . Investment
- D . Accounting
Which of the following is an example of off-balance-sheet financing?
- A . Capital lease
- B . Zero-coupon bond
- C . Commercial paper
- D . Factoring receivables
The Federal Reserve can increase the money supply by:
- A . increasing the reserve requirement.
- B . increasing the discount rate.
- C . selling government securities.
- D . purchasing government securities.
There are 31 calendar days in the month, and the opportunity cost of funds is 9%.
What is the annual cost of float for the batches listed?
- A . $78,387.09
- B . $78,532.25
- C . $79,838.71
- D . $82,499.99
Company XYZ has stable cash flows and sizable assets. The board of directors compared its WACC with its own industry’s averages and determined that it may be at a competitive disadvantage.
In order to become more competitive, what action will XYZ MOST LIKELY take?
- A . Issue new debt and repurchase common shares.
- B . Issue more common shares and retire debt.
- C . Reduce the dividend for a few quarters.
- D . Issue preferred shares with convertible warrants.
Which of the following instruments simplifies the paperwork connected with loans that have multiple advance features?
- A . Master note
- B . Banker’s acceptance
- C . Indenture agreement
- D . Note purchase agreement
Owners of a privately-held company have decided to sell the business, but are receiving offers dramatically lower than what the firm is worth (as estimated by the owners).
Which of the following options is the BEST way for management to establish the true value of their company?
- A . Issue stock to the public through an IPO.
- B . Increase the dividend payout ratio.
- C . Repurchase shares to elevate stock price.
- D . Alter the capital structure by issuing more debt.