CTP Sample Test Questions and Answers Updated 2026

CTP Sample Test
Questions and Answers
Updated 2026
CompanyBABCBhasBaBconcentratedBinvestorBbaseBconsistingBprimarilyBofBlargeBinstitutio
nalBshareholders.BItBwouldBlikeBtoBincreaseBitsBnumberBofBsmallerBshareholdersBusingB
theBmostBcostBeffectiveBmethodBofBraisingBcapitalBavailable.BWhatBshouldBCompanyBAB
CBdoBtoBaccomplishBthisBgoal?B-BAnswerImplementBaBdividendBreinvestmentBplan



ABcashBmanagerBatBaBretailerBforecastsBaBpositiveBcollectedBcashBpositionBforBtheBend
BofBtheBcurrentBday.BTheBcompanyBhasBanBoverdraftBfacilityBatB10%,BaBseparateBinvest
mentBaccountBearningB8%BbeforeBtaxes,BanBearningsBcreditBrateBofB8%BandBanBoutsta
ndingBsingleBpaymentBnoteBatB9.5%BmaturingBinB1Bweek.BThisBmonth'sBbankBserviceBf
eesBareBexpectedBtoBexceedBtheBearningsBcredit.BWhichBofBtheBfollowingBintra-
dayBoptionsBwouldBbeBtheBMOSTBeconomicallyBpositiveBforBtheBcompany?B-
BAnswerLeaveBtheBfundsBinBtheBaccount



WhichBofBtheBfollowingBBESTBdescribesBanBadvantageBofBaBcompanyBgoingBpublic?B-
BAnswerIncreasedBLiquidity



WhenBaBshort-
termBloanBisBpaidBwithBaBlumpBsumBpaymentBandBtheBpaymentBincludesBbothBinterest
BandBprincipal,BtheBloanBisBoftenBreferredBtoBasBa:B-BAnswerSingleBpaymentBnote



TheBCompanyBJBportfolioBconsistsBofBtwoBstocks,B65%BofBStockBABwithBaBreturnBofB7.
63%BandB35%BofBStockBBBwithBaBreturnBofB3.89%.BWhatBisBtheBCompanyBJBportfolioB
return?B-BAnswer6.32%



WhatBdoesBaBcompanyBwithBaBrestrictiveBcurrentBassetBinvestmentBstrategyBtypicallyBh
ave?B-BAnswerLowBaccountsBreceivableBbalances

,WhichBofBtheBfollowingBisBaBratioBthatBisBoftenBusedBbyBcommercialBbanksBtoBmeasur
eBaBcompany'sBleverageBandBdoesBnotBincludeBtheBeffectBofBassetsBthatBareBdifficultBt
oBvalueBorBareBNOTBeasilyBconvertedBtoBcash?B-BAnswerDebtBtoBtangibleBnetBworth



WhichBofBtheBfollowingBcanBbeBconsideredBkeyBresponsibilitiesBofBdailyBcashBmanagem
ent?

I.BOverseeingBcompensationBforBbankBservicesB

II.BManagementBofBshort-termBborrowingBandBinvestingB

III.BProjectingBfutureBcashBshortagesBandBsurplusesB-BAnswerI,BII,B&BIII



SeniorBmanagementBatBABCBCompanyBplansBtoBmakeBaBlargeBcapitalBexpenditureBtoBb
olsterBitsBinfrastructureBexactlyBoneByearBfromBnow.BTheirBprimaryBconcernBisBtoBpres
erveBtheBcurrentBcapitalBpositionBuntilBtheBexpectedBcashBoutlay.BTheBmajorityBofBthe
BcashBatBABCBCompanyBisBheldBinBtreasuryBnotes,BbutBmanagementBwouldBlikeBtoBals
oBinvestBsomeBofBtheBmoneyBintoBcorporateBbondsBandBmoneyBmarketBfunds.BWhichB
investmentBobjectiveBBESTBsuitsBtheBneedsBofBABCBCompany?B-BAnswerSafety



EarningsBCreditBcalculation:BAssumptionsB-
BAverageBledgerBbalanceB$1,500,000BDepositBFloatB$250,000BReserveBRequirementB10
%BEarningsBCreditBRateB45BbpsBServiceBChargesBforBtheBmonthB$12,500BDaysBinBtheB
MonthB30BWhatBisBtheBearningsBcreditBtheBcompanyBisBreceivingBforBthisBmonth?B-
BAnswer$416.10



UsingBtheBinformationBprovidedBforBquestionB10,BwhatBwouldBtheBearningsBcreditBcha
ngeBtoBifBtheBcompanyBnegotiatedBaB50%BdecreaseBinBdepositBfloatB?B-
BAnswer$457.71



TheBtreasurerBofBaBcorporationBisBnegotiatingBwithBoneBofBhis/herBsuppliersBtoBallowB
theBcorporationBtoBhaveB30BdaysBtoBpayBtheBsupplier'sBinvoices.BTheBtreasurerBisBarra
nging:B-BAnswerShort-termBfinancing



WhenBusingBtheBInternetBtoBaccessBauctionBmarkets,BcompaniesBmayBuseBcertificateBa
uthoritiesBtoBreduceBtheirBexposureBtoBwhichBofBtheBfollowingBtypesBofBrisk?B-
BAnswerCounterparty

, ABcompanyBcanBpayBtheirBsupplierBbyBcheckBorBbyBelectronicBtransfer.BIfBtheBdifferenc
eBbetweenBtheBvalueBdateBofBtheBpaymentBmethodsBisB4BdaysBfromBtheBcompany'sBp
erspective,BwhatBdiscountBshouldBtheBsupplierBofferBthemBtoBgetBtheBcompanyBtoBpay
BonBtheBsameBdayBasBtheyBdidBwhenBtheyBpaidBbyBcheckB(roundedBtoBtheBnearestB10
0thBpercent)?BAssumeBnoBdifferenceBinBtheBcostBofBtheBpaymentBmethod,BanBopportu
nityBcostBofB8%,BandBfloatBneutrality.B-BAnswer0.09%



WhichBofBtheBfollowingBisBaBtoolBthatBcompaniesBuseBtoBobtainBaBquantitativeBratingB
ofBaBfinancialBinstitution'sBlevelBofBservice?B-BAnswerScoreBcard



AnBairlineBwantsBtoBlockBinBtheBpriceBofBtheBjetBfuelBitBneedsBtoBpurchaseBtoBsatisfyB
theBpeakBin-
seasonBdemandBforBtravel.BTheBairlineBwantsBtoBmanageBitsBexposureBtoBfluctuationsBi
nBfuelBprices.BWhatBtypeBofBexposureBisBthis?B-BAnswerCommodity



ABFrenchBexporterBsellsBgoodsBtoBaBforeignBbuyerBinBeurosBandBwantsBtoBguaranteeBt
hatBpaymentBisBmadeBbyBtheBbuyer.BTheBexporterBwouldBMOSTBLIKELYBrequireBa(n):B-
BAnswerLetterBofBcredit



TheBrightBofBstockholdersBtoBpurchase,BonBaBpro-
rataBbasis,BanyBnewBsharesBissuedBbyBtheBcompanyBisBreferredBtoBas:B-
BAnswerPreemptiveBright



AfterBaBrecentBreviewBofBitsBinsuranceBpolicies,BaBpetroleumBproductsBcompanyBdeter
minesBitBneedsBtoBre-
evaluateBitsBriskBexposureBtoBpotentiallyBreduceBitsBinsuranceBpremiums.BTheBcompany
BhasBoperatedBinBtwoBlocationsBforB20ByearsBbutBonlyBproducesBandBstoresBpetroleum
BatBoneBlocation.BInBdoingBso,BtheBriskBmanagerBdeterminesBtheBfollowingBexposures:B

•BTheBnumberBofBemployeeBworkersBcompensationBclaimsBdueBtoBinjuriesBwhileBloadi
ngBtrucksBhasBincreasedB25%BinBtheBpastB12BmonthsB

•BTheBprimaryBtankBusedBforBpetroleumBstorageBisB13ByearsBoldBandBstandardBlifeBofB
tanksBofBthisBmodelBisB20ByearsB

•BThereBisBonlyBoneBroadBintoBtheBcurrentBpetroleumBstorageBfacilityB