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
A company is interested in lowering its overall banking costs, managing netting, pooling, re-invoicing, and centralizing FX exposure at headquarters.
Which of the following options will accomplish this?
- A . In-house banking
- B . Shared service center
- C . Company processing center
- D . Automated clearing house
An international company would establish a re-invoicing center for which of the following reasons?
- A . To reduce its international balance reporting charges
- B . To manage the foreign exchange exposure of its foreign subsidiaries
- C . To take advantage of interest-bearing demand deposits
- D . To bring transaction exposures more closely in line with economic exposures
Company XYZ is a high technology company. It is planning on acquiring another company in the high technology sector. Company XYZ does not have enough cash to acquire the company and is planning on financing the acquisition through a bond offering.
Which of the following measures is company XYZ MOST LIKELY to use in its analysis of operating profits considering it is a high debt transaction?
- A . Long-term debt to capital
- B . EBITDA margin
- C . Net profit margin
- D . Return on equity
In terms of capital structure, lease financing normally has the same effect as:
- A . investing.
- B . borrowing.
- C . capitalizing.
- D . lending.
What is the primary weakness of a risk management policy that includes risk control without specifically providing a plan for risk financing?
- A . Resources are used to pay for losses that could have been prevented.
- B . Funding must be set aside for self-insurance.
- C . There is an increase in the potential for claims of negligence.
- D . Catastrophic losses could result in bankruptcy.
The MOST important tool the Federal Reserve Board has for influencing the amount of reserves in the banking system is:
- A . meetings of the Reserve Board of Governors.
- B . open market operations by the New York Federal Reserve.
- C . term limits for the Federal Reserve Governors.
- D . accepting tax payments on behalf of the IRS.
An organization must maintain adequate liquidity to meet:
- A . strategic objectives.
- B . five year plan.
- C . transaction requirements.
- D . defined contribution plan distributions.
Which of the following is NOT one of the three goals of a disbursement system?
- A . Bank relationship management
- B . Information access
- C . Fraud prevention
- D . Centralize payments
Which of the following is an example of a qualitative factor used in making credit decisions?
- A . Character
- B . Capital
- C . Collateral
- D . Capacity
At the end of the year, ABC Company’s actual revenue is $85,000,000 versus budget revenue of
$90,000,000. Actual operating expenses are $20,000,000 versus budget operating expenses of
$22,000,000.
Budget variance analysis would indicate a(n):
- A . favorable revenue variance and an unfavorable operating expenses variance.
- B . favorable revenue variance and a favorable operating expenses variance.
- C . unfavorable revenue variance and a favorable operating expenses variance.
- D . unfavorable revenue variance and an unfavorable operating expenses variance.