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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 # 61

A retail company is performing a risk analysis on its accepted payment types. Cash is the primary form of payment for this retailer. What is the PRIMARY issue with cash payment systems?

Options:

A.  

Weight of cash

B.  

Cost of processing

C.  

Security and integrity

D.  

Cash-based accounting practices

Discussion 0
Question # 62

The PRIMARY goal of treasury management is to use which of the following efficiently?

Options:

A.  

Net income

B.  

Cash

C.  

Payment methods

D.  

Equity

Discussion 0
Question # 63

Who has responsibility for final approval of treasury policies that have a significant impact on the organization?

Options:

A.  

The board of directors

B.  

The chief financial officer

C.  

The treasurer

D.  

The audit committee

Discussion 0
Question # 64

A large U.S. based multinational corporation favors use of intra-company loans to repatriate funds from its foreign subsidiaries in order to take advantage of the favorable tax treatment of loans. In those countries which restrict repayment of intra-company loans the corporation may need to:

Options:

A.  

negotiate repayment with the host government.

B.  

conduct the repayment at “arm’s length”.

C.  

pay licensing fees to the host government.

D.  

hire a multinational bank to act as an intermediary.

Discussion 0
Question # 65

XYZ Company's cash manager is evaluating cash concentration transfer options. The company has an 8% cost of funds and $50,000 in average daily field cash receipts. The wire transfer results in the transfer of funds one day faster. Which of the following options correctly ranks the transfer choices from most cost-effective to least cost-effective?

1. Electronic depository transfer costing $1.00

2. Electronic depository transfer costing $2.50

3. Wire transfer costing $8.00

4. Wire transfer costing $15.00

Options:

A.  

1, 2, 3, 4

B.  

1, 3, 2, 4

C.  

3, 1, 2, 4

D.  

3, 4, 1, 2

Discussion 0
Question # 66

A company's basic investment objectives should include all of the following EXCEPT:

Options:

A.  

ensuring liquidity.

B.  

optimizing returns.

C.  

maximizing exposure.

D.  

minimizing risk.

Discussion 0
Question # 67

A financially sound company sends wires to investors in the morning but does not receive replacement funds until the afternoon. Which facility will the company MOST LIKELY arrange with its bank to facilitate the company’s wire payment activities on any given day?

Options:

A.  

A ledger overdraft

B.  

A daylight overdraft

C.  

A standby letter of credit

D.  

A short-term line of credit

Discussion 0
Question # 68

Because of the growing demand in China for oil, a transportation company decides to assume a long position on oil in hopes of generating short-term investment income. Which of the following describes the firm’s strategy?

Options:

A.  

Speculation

B.  

Arbitrage

C.  

Hedging

D.  

Risk management

Discussion 0
Question # 69

Companies that seek out other companies that have successfully redesigned their operations are engaging in a process called:

Options:

A.  

outsourcing.

B.  

benchmarking.

C.  

re-engineering.

D.  

continuous improvement.

Discussion 0
Question # 70

Based on the above information, before making the major acquisition, several large institutional shareholders have asked management to consider all of the following EXCEPT:

Question # 70

Options:

A.  

a stock split.

B.  

a special dividend.

C.  

a stock repurchase.

D.  

a stock dividend.

Discussion 0

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