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
The key parties involved in a disaster recovery plan are generally classified as internal resources or external counterparties.
When evaluating the risks of both parties, which of the following can be assumed?
- A . The review of internal resources takes greater importance.
- B . The infrastructure linking the parties’ systems must be considered.
- C . The disaster recovery sites of both parties must be in the same location.
- D . The systems used by both parties must be compatible.
The credit management function is responsible for:
- A . establishing the bank network.
- B . forecasting cash flow.
- C . approving customers.
- D . concentrating lockbox receipts.
A main characteristic of a company with regional offices using a centralized treasury function is:
- A . high level of control.
- B . increased borrowing costs.
- C . centrally determined depository accounts.
- D . increased operating costs.
The earnings allowance rate applied to collected balances is usually determined by which of the following rates?
- A . 90-day T-bill
- B . LIBOR
- C . Prime
- D . Fed Funds
A company has asked its marketing, payroll and sales teams to collaborate in finding a solution that could augment its customer base, reduce payroll cost and increase sales. The solution has to be market ready.
Which of the following will serve all 3 purposes?
- A . Ghost cards
- B . Smart cards
- C . PIN based cards
- D . Stored value card
Which two of the following are necessary to calculate average collected balances?
I. Deposit float
II. Reserve requirements
III. Ledger balance
IV. Earnings credit rate
- A . I and II
- B . I and III
- C . II and IV
- D . III and IV
A company has a $300,000 credit line of which $200,000 was the average amount outstanding for the year. The terms of the loan include a 1/2 of 1% commitment fee on the unused portion, an interest rate of 10%, and a compensating balance requirement of 2% of the total credit line. The company’s compensating balances are funded from credit-line borrowings.
What is the effective annual interest rate on the net usable funds?
- A . 10.00%
- B . 10.25%
- C . 10.31%
- D . 10.57%
A company has a $300,000 credit line of which $200,000 was the average amount outstanding for the year. The terms of the loan include a 1/2 of 1% commitment fee on the unused portion, an interest rate of 10%, and a compensating balance requirement of 2% of the total credit line. The company’s compensating balances are funded from credit-line borrowings.
What is the effective annual interest rate on the net usable funds?
- A . 10.00%
- B . 10.25%
- C . 10.31%
- D . 10.57%
ABC Company has recently moved away from paper-based invoicing systems and has begun implementing e-commerce solutions. Realizing that its e-commerce implementation may have a negative impact on the float of its trading partners, ABC can do which of the following to help address this concern?
- A . Change the payment discount terms for the trading partners.
- B . Allow the trading partners to use the company’s e-commerce solution.
- C . Negotiate larger order quantities from the trading partners.
- D . Agree to a uniform data transfer protocol for all trading partners.
The time between receipt of a mailed payment and the deposit of the payment in the payee’s account is known as:
- A . collection float.
- B . mail float.
- C . processing float.
- D . availability float.