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Free Certified Treasury Professional Practice Questions

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Total Questions : 1076

Start with our free CTP practice questions, carefully crafted to mirror the domains, phrasing, and difficulty of the real AFP Certification exam. Each CTP exam question comes with a detailed rationale that explains not just which answer is correct but why the others fall short. That's how concepts stick. Use the free set to benchmark yourself: identify your AFP weak domains, see where you're losing marks, and build a focused study plan in minutes.

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Question # 131

A portfolio manager’s investment policy states that they are not allowed to hold any investments that have extension risk. Which type of investment should the portfolio manager avoid?

Options:

A.  

REMICs

B.  

Ginnie Mae MBSes

C.  

Municipal bonds

D.  

Treasury notes

Discussion 0
Question # 132

A small regional bank is losing market share in fiduciary services and the CEO has decided to scale back the trust department. Which of the following is considered a core service of a trust department?

Options:

A.  

Paying agent for dividend and interest payments

B.  

Monitoring compliance with audit procedures

C.  

Providing consulting services in debt origination

D.  

Processing drafts for collection.

Discussion 0
Question # 133

Which of the following actions would the CFO of a Canadian multinational conglomerate MOST LIKELY take to repatriate profits from its international subsidiaries?

Options:

A.  

Re-invoicing

B.  

Multilateral netting

C.  

Unbundle cash flows

D.  

Pooling

Discussion 0
Question # 134

On June 1, a manufacturing company experienced a system failure that lasted more than 24 hours. The company did not have any contingency plans in place and as a result the cash manager was unable to process the following payments: $25,000 to the p-card issuer, $125,000 for weekly payroll, $500,000 for a bond interest payment, $260,000 for the weekly vendor payments and $50,000 for the monthly utilities. The receivables were deposited at the bank; however, the cash manager does not have a way to confirm the amounts. The suppliers are threatening to stop shipments due to the delay in payment and the loss of supplier shipments threatens the company’s just-in-time production. What did the manufacturing company trigger as a result of the system failure?

Options:

A.  

Supplier risk

B.  

Default on the debt

C.  

Electronic security risk

D.  

Contingency business resumption plan failure

Discussion 0
Question # 135

Which statement is true about credit unions?

Options:

A.  

They offer lending rates similar to other financial institutions.

B.  

They are not-for-profit organizations.

C.  

Their deposits are insured by the FDI

C.  

D.  

They can only be chartered by state agencies.

Discussion 0
Question # 136

Which of the following is sought from a typical cash management services Request for Proposals (RFP)?

Options:

A.  

CAMELS score

B.  

Asset investment strategy

C.  

Pension funding status

D.  

Implementation team

Discussion 0
Question # 137

Equity section of Fisher, Inc. Financial Statement

Question # 137

If an investor paid $1,400.00 (excluding fees) for 75 shares of common stock, what was the market value of Fisher, Inc. at the time of purchase?

Options:

A.  

15.50

B.  

15.76

C.  

16.97

D.  

18.67

Discussion 0
Question # 138

Company ABC has a concentrated investor base consisting primarily of large institutional shareholders. It would like to increase its number of smaller shareholders using the most cost effective method of raising capital available. What should Company ABC do to accomplish this goal?

Options:

A.  

Issue preferred stock.

B.  

Implement a dividend reinvestment plan.

C.  

Issue warrants.

D.  

Implement a stock repurchase plan.

Discussion 0
Question # 139

The treasury manager of an auto-parts manufacturer has noticed that checks were sent to a foreign individual not on the approved vendor list. The payables manager has explained the payments but did not provide an invoice. The treasury manager did no further research and is later disciplined for:

Options:

A.  

not reporting suspicious activity under the USA Patriot Act.

B.  

not purchasing enough surety insurance.

C.  

ignoring International Accounting Standards Board regulations.

D.  

not implementing “Check 21.”

Discussion 0

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