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 bank employee programs an internal payment system to transfer half a cent of each transaction to her personal bank account.
What type of risk does this behavior illustrate?
- A . Surety risk
- B . Payment risk
- C . Fiduciary risk
- D . Technology risk
Transmission of a file of items presented for payment by the payor bank to the issuing company is known as:
- A . reverse positive pay.
- B . positive pay.
- C . full reconciliation.
- D . payor bank services.
A major toy retailer operates 65 retail stores throughout the Midwest.
Which of the following credit terms is MOST LIKELY to be offered to this company by its suppliers?
- A . Floor planning
- B . Seasonal dating
- C . Factoring
- D . Letter of credit
B
Topic 7, Volume F
The Treasurer of PJB Company is in charge of implementing new treasury management software. Without issuing any RFPs, the Treasurer hires a consulting company to install the software and program it to suit the company’s needs. The Treasurer is responsible for approving the consultant’s invoices for payment. Through conversation, the CFO discovered that the Treasurer’s relative is one of the partners at the consulting company. The Treasurer was immediately terminated.
What did the Treasurer MOST LIKELY violate?
- A . The corporate code of conduct
- B . Sarbanes-Oxley controls
- C . The Uniform Commercial Code
- D . Treasury operations procedures
A treasurer has been advised that his privately held company has just lost its largest customer, which will have a significant impact on earnings. The treasurer applies an aggressive working capital strategy. Presently, the yield curve is upward sloping.
Given this information, the treasurer should ensure that the company has:
- A . short-term non-committed lines.
- B . short-term committed lines.
- C . long-term non-committed lines.
- D . long-term committed lines.
Company XYZ has determined that its weighted average cost of capital is 12.5%. The capital structure of the company is made up of 75% equity and 25% debt. The before-tax cost of debt is 10%.
Given a tax rate of 34%, what is XYZ’s cost of common stock?
- A . 13.25%
- B . 14.47%
- C . 15.25%
- D . 16.53%
Liquidity reserves for opportunistic requirements are typically maintained in the form of:
- A . short-term investments.
- B . short-term borrowing facilities.
- C . working capital.
- D . long-term investments.
The owner of XYZ Company just completed an initial public offering.
Which of the following is the MOST LIKELY outcome?
- A . The owner will gain more operational control.
- B . The owner will be able to diversify his personal portfolio.
- C . The company will save on accounting costs.
- D . The company will increase productivity.
All of the following are examples of treasury management system transactions for liquidity management EXCEPT:
- A . FX transactions.
- B . loan draw-downs.
- C . investment sales.
- D . loan paydowns.
A currency swap is BEST described as an:
- A . immediate exchange of bank drafts.
- B . agreement to convert an obligation in one currency to another.
- C . agreement to deliver or purchase a currency in two days.
- D . option traded on a recognized exchange.