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
Treasury uses all of the following types of internal information EXCEPT:
- A . projected weekly sales.
- B . security safekeeping activity.
- C . large outstanding collection items.
- D . debt repayment schedule.
According to risk management experts, the BEST approach in managing operational risk is to:
- A . maintain a strong business continuity plan that can be used in disaster situations.
- B . document all company policies and procedures to ensure appropriate training for new staff.
- C . create a strong technological infrastructure that can identify security breaches as they occur.
- D . develop a corporate culture that promotes individual responsibility and supports educated risk taking.
The process by which a bank or insurance company guarantees the debt obligation of a borrower is referred to as credit:
- A . enhancement.
- B . rating.
- C . scoring.
- D . options.
A company is evaluating a project.
What is the appropriate discount rate that it should use if its marginal tax rate is 34%, its capital structure is 40% common equity, and 60% debt. Its cost of equity is 10%, and its average cost of debt is 4%?
- A . 5.04%
- B . 5.30%
- C . 5.58%
- D . 6.40%
A multinational company may use which of the following to locate profits in subsidiaries in low-tax countries?
- A . Dividends
- B . Transfer pricing
- C . Management fees
- D . Intracompany loans
A manufacturing company begins using just-in-time (JIT) inventory management.
Which JIT-related payment process is MOST LIKELY to be implemented?
- A . Forward dated check
- B . Point of purchase
- C . Paid-on-production
- D . Fedwire
In comparing the U.S. banking system and foreign banking systems, which of the following statements is true?
- A . Most foreign banking systems do not have central banks.
- B . Foreign banking systems typically have more financial institutions than the U.S.
- C . Foreign banking systems are not permitted to own equity investments in corporations and U.S. banks are.
- D . Many foreign banking systems allow notional pooling and U.S. banks do not.
Netting is used by which of the following as a cross-border payment technique?
- A . European giro providers
- B . Foreign subsidiaries of a company
- C . Counterparties in a letter of credit transaction
- D . TARGET participants
A bank is evaluating the credit risk for a company seeking to optimize costs and originate a high volume of outgoing ACH payments.
What is the BEST provision the bank should establish to control its credit exposure?
- A . An intraday credit limit for the company
- B . A limit on the number of items processed per day
- C . An overdraft facility for the company
- D . A standby letter of credit for the company
A bank is evaluating the credit risk for a company seeking to optimize costs and originate a high volume of outgoing ACH payments.
What is the BEST provision the bank should establish to control its credit exposure?
- A . An intraday credit limit for the company
- B . A limit on the number of items processed per day
- C . An overdraft facility for the company
- D . A standby letter of credit for the company