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
The KEY decision in using CCD+ and CTX formats for B2B payments is:
- A . whether to keep the payment and remittance information together or separate.
- B . whether to use the Internet or an EDI spoke to transmit electronic payments.
- C . whether to use an EDI or a UN/EDIFACT protocol to transfer the value electronically.
- D . whether an evaluated receipts or paid-on-production technique is being used for the transfer.
A company invests in a bond and then later agrees to sell the bond to a bank with the understanding that the company will buy the bond back at a later time.
This is known as:
- A . reverse repurchase.
- B . securitization.
- C . factoring.
- D . syndication.
The PRIMARY objective of the AFP Account Analysis Standard is to help cash managers in which of the following areas?
- A . Automating account analysis reporting
- B . Unbundling bank charges
- C . Comparing costs among banks
- D . Setting target balances
The credit risk in the settlement of a Fedwire is borne by the:
- A . sending company.
- B . receiving bank.
- C . Federal Reserve.
- D . receiving company.
Improvements to the cash flow timeline from a selling company’s perspective would include:
- A . decreasing disbursement float.
- B . decreasing collection float.
- C . increasing mail float.
- D . increasing invoice float.
Recently LEW Utilities, a local utility company, began using the company processing center method to process customer payments. Prior to this change, it used its local depository bank’s lockbox to process the payments.
The PRIMARY advantage of the new method is to:
- A . decrease mail float as a result of applying payments in-house.
- B . ensure that payments are correctly applied to the customer’s account.
- C . reduce the processing float since payments are mailed directly to the customer.
- D . lower overall costs since in-house processing is cheaper than third-party processing.
All of the following are differences between Fedwire and ACH EXCEPT:
- A . ACH per item transaction costs are less.
- B . ACH transactions have delayed settlement.
- C . ACH transactions involve more consumer payments.
- D . ACH items have no credit risk.
Company X, a US based multi-national, is exploring the option of locating a subsidiary in another country where there has been some historical risk of expropriation of local assets of foreign corporations. Therefore, as part of the risk assessment process the company must specifically quantify the:
- A . political risk.
- B . physical security risk.
- C . financial institution risk.
- D . property risk.
A pizza restaurant chain maintains separate accounts at bank branches near each of their 1,067 restaurants to handle the deposit of cash received. Early each morning, the company’s point-of-sale system electronically transmits collection totals from the previous day to its main computer. ACH debits are then initiated to concentrate the funds from the local accounts to the concentration account the following day. Recently, several of the ACH debits have been returned for insufficient funds because deposits weren’t being taken to the bank on a timely basis by the local employees.
Without increasing staff at the restaurants, what could Treasury do to prevent this from happening and avoid overdrafts at the local banks?
- A . Negotiate better float schedules at its local banks.
- B . Install smart safes at each restaurant location.
- C . Use a courier to deposit to each bank 3 times per week.
- D . Use wire transfers to concentrate the cash instead of ACH.
Which cost benefit analysis technique uses the methodology to find where the present value of each project’s cash inflows equals the present value of each project’s outflows?
- A . Profitability index
- B . Payback period
- C . NPV
- D . IRR