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
Given the above information.
If the risk manager adds a tank at its second facility, what loss control technique is being used?
- A . Exposure avoidance
- B . Limiting contractual acceptance of risk
- C . Catastrophic loss control
- D . Separation of exposures
Which of the following is NOT characteristic of commercial paper with a term of less than 270 days?
- A . It is usually sold through a dealer.
- B . It is considered an unsecured promissory note.
- C . It typically costs less than bank debt.
- D . It must be registered with the SEC.
A manufacturing company has no liquidity and needs to purchase additional inventory in 60 days.
Which of the following would have helped the company plan for this situation?
- A . A capital budget
- B . A short term forecast
- C . A medium term forecast
- D . A long term forecast
A treasury manager expects the price of a commodity to be highly volatile between the time of option purchase and exercise.
Which option style would provide the greatest flexibility?
- A . American Style
- B . Bermuda Style
- C . Cayman Style
- D . European Style
A company determines that no combination of risk control or financing techniques will produce an adequate, risk-adjusted rate of return on manufacturing a new product. It decides to discontinue the product line.
This is an example of:
- A . capacity error.
- B . indemnification.
- C . exposure avoidance.
- D . consequential damages.
The MOST common way that companies structure their treasury operations is as a:
- A . cost center.
- B . profit center.
- C . shared service center.
- D . in-house bank.
All of the following are typical uses of a zero balance account EXCEPT:
- A . payroll.
- B . dividend payments.
- C . trade accounts payable.
- D . overnight investments.
Under Section 404 of the Sarbanes-Oxley Act, management must state its responsibility for which of the following?
- A . Knowledge of the penalties for noncompliance
- B . Selection of auditors who are knowledgeable about Sarbanes-Oxley requirements
- C . Establishment and maintenance of adequate internal controls for financial reporting
- D . Accuracy and completeness of financial statements
The historic rate of return in the U.S. stock market is 8%. An investment portfolio has a mix of equity investments consisting of 40% A-Corp stock, 30% K-Corp stock, 10% M-Corp stock and 20% W-Corp stock. The investment portfolio manager tends to buy and hold the equity investment position for 3 years on average. To calculate the required rate of return for this investment portfolio.
What rate from the table would be used as the risk-free rate?
- A . 0.10%
- B . 0.75%
- C . 3.30%
- D . 4.50%
CT Check Cashing routinely cashes payroll checks from JD Software. Someone presents a fraudulent check from JD Software to CT Check Cashing. The fraudulent item looks virtually identical to JD Software’s regular payroll checks. CT Check Cashing pays the person cashing the check the amount for which it is issued. CT Check Cashing later discovers that the check was fraudulent and wants JD Software to reimburse them for the amount of the check.
Which of the following statements is correct?
- A . Fraudulent endorsement has occurred and JD Software will not be held liable for this item.
- B . This item is payable through draft so JD Software will be liable to CT Check Cashing for the amount of the check.
- C . JD Software has a controlled disbursement account so CT Check Cashing will not have recourse against JD Software for this item.
- D . Positive pay is designed to reject the item, but JD Software may ultimately be held liable if CT Check Cashing is deemed to be a holder in due course.