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CTP Practice Exam Questions and Answers

Certified Treasury Professional

Last Update 6 days ago
Total Questions : 932

Certified Treasury Professional is stable now with all latest exam questions are added 6 days ago. Incorporating CTP practice exam questions into your study plan is more than just a preparation strategy.

CTP exam questions often include scenarios and problem-solving exercises that mirror real-world challenges. Working through CTP dumps allows you to practice pacing yourself, ensuring that you can complete all Certified Treasury Professional practice test within the allotted time frame.

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Question # 1

A treasurer has been advised that his privately held company has just lost its largest customer, which will have a significant impact on earnings. The treasurer applies an aggressive working capital strategy. Presently, the yield curve is upward sloping. Given this information, the treasurer should ensure that the company has:

Options:

A.  

short-term non-committed lines.

B.  

short-term committed lines.

C.  

long-term non-committed lines.

D.  

long-term committed lines.

Discussion 0
Question # 2

An accounts payable manager has been mandated to accept all trade discount opportunities with an effective cost of discount above 25%. An invoice has been presented and approved for payment with terms of 3/5, net 30 days. What is the difference between the effective cost of discount offered, and the 25% rate set by the company?

Options:

A.  

14%

B.  

17%

C.  

20%

D.  

22%

Discussion 0
Question # 3

A national retailer’s cash management system includes a field deposit system using multiple banks. To limit the impact of a failure of one of these banks, a cash manager should:

Options:

A.  

consolidate all accounts at one bank.

B.  

use wire transfers for concentration.

C.  

monitor each bank’s credit policies.

D.  

concentrate cash on a regular basis.

Discussion 0
Question # 4

In order to increase liquidity, ABC Motor Company bundled its customers’ installment payments and resold them to other investors. This is known as:

Options:

A.  

factoring.

B.  

securitization.

C.  

reclassification.

D.  

secondary distribution.

Discussion 0
Question # 5

As a result of the Sarbanes-Oxley Act, what new entity was established to sanction firms and individuals for audit violations?

Options:

A.  

The Sarbanes-Oxley Review and Assessment Board

B.  

The Accounting Controls Advisory Board

C.  

The Public Company Accounting Oversight Board

D.  

The Auditing Review Board

Discussion 0
Question # 6

A put option gives the holder the right to:

Options:

A.  

buy the underlying stock at the strike price.

B.  

sell the underlying stock at the strike price.

C.  

sell short shares of the underlying stock at the strike price.

D.  

buy long shares of the underlying stock at the strike price.

Discussion 0
Question # 7

A company has multiple wholly-owned subsidiaries that issue their own checks which are signed by head office staff. The company decides to move to electronic payments using their bank’s internet-based payment systems to reduce costs. Payments are now initiated by the subsidiaries. What element of the payment policy should be considered if the company still wants to maintain head office control over payments?

Options:

A.  

Risk mitigation

B.  

Objectives and scope

C.  

Roles and responsibilities

D.  

Performance measurement and reporting

Discussion 0
Question # 8

An equity management company’s Chief Financial Officer and Treasurer are evaluating their corporate investments and decide that they need to diversify their stock holdings to include personal care products companies. Based on their analysis, publicly-traded companies A and B stand out as choices. Company A has a beta value of 0.65 while company B has a beta value of 1.10. They decide to invest in Company

A.  

What objective of their investment policy did they use to make their decision?

Options:

A.  

Safety

B.  

Liquidity

C.  

Exposure horizon

D.  

Risk/return trade-off

Discussion 0
Question # 9

The regional offices of ABC Company implemented a system that would allow the employees to pass information between regions in a secure fashion. This system requires that all offices have the same key in order to read messages sent electronically. Which e-commence security type is MOST LIKELY being used?

Options:

A.  

Secure sockets layer

B.  

Layered authentication

C.  

Public key infrastructure

D.  

Shared secret key system

Discussion 0
Question # 10

Which of the following is an example of off-balance-sheet financing?

Options:

A.  

Capital lease

B.  

Zero-coupon bond

C.  

Commercial paper

D.  

Factoring receivables

Discussion 0
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