CTP Practice Exam Questions and Answers Updated 2026

CTP Practice Exam
Questions and Answers
Updated 2026
ABcashBmanagerBatBaBretailerBforecastsBaBpositiveBcollectedBcashBpositionBforBtheBend
BofBtheBcurrentBday.BTheBcompanyBhasBanBoverdraftBfacilityBatB10%,BaBseparateBinvest
mentBaccountBearningB8%BbeforeBtaxes,BanBearningsBcreditBrateBofB8%BandBanBoutsta
ndingBsingleBpaymentBnoteBatB9.5%BmaturingBinB1Bweek.BThisBmonth'sBbankBserviceBf
eesBareBexpectedBtoBexceedBtheBearningsBcredit.BWhichBofBtheBfollowingBintra-
dayBoptionsBwouldBbeBtheBMOSTBeconomicallyBpositiveBforBtheBcompany?B

A.BLeaveBtheBfundsBinBtheBaccount

BB.BRedeemBtheBsingleBpaymentBnoteB

C.BPrepayBadministrativeBexpensesBD.BTransferBfundsBtoBtheBinvestmentBaccountB-
BAnswerA



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

A.B2.00%BB.B0.09%BC.B0.87%BD.B0.02%B-BAnswerB



ABCBCompany,BaBleadingBproviderBofBofficeBsupplies,BhasBsuccessfullyBimplementedBED
IBbasedBonBaBrequestBfromBoneBofBitsBcustomers.BABCBwillBnotBonlyBbenefitBfromBthe
BstrategicBallianceBthatBwillBresult,BbutBasBmoreBofBABC'sBcustomersBadoptBtheBprogra
m,BABCBwillBalsoBexperienceBaBpositiveBimpactBonBits:BA.BEFTBcostsB

B.BC2CBlevelsB

C.BValueBaddedBnetworksB

D.BInventoryBlevelsB-BAnswerD

, ABportfolioBmanagerBpurchasesBaBfloatingBrateBmortgageBbackedBsecurityBthatBwouldBc
urrentlyBprovideBaB4%ByieldBtoBtheBcompany.BSinceBmortgageBratesBhaveBbeenBfluctua
tingBsignificantlyBoverBtheBpastBmonth,BtheBmanagerBisBthinkingBaboutBenteringBintoBa
nBinterestBrateBswapBtoBhedgeBagainstBtheBrateBmovements.BAlthoughBtheBmanagerBw
ouldBremoveBmostBofBtheBpriceBsensitivityBofBtheBassetBbyBexecutingBtheBswap,BitBwo
uldBalsoBlowerBtheBtotalByieldBonBtheBinvestmentBdueBtoBswapBcosts.BWhatBobjectiveB
inBtheBcompanyBinvestmentBpolicyBisBguidingBtheBportfolioBmanager'sBdecision?B

A.BRiskBanalysisB

B.BRisk/returnBtradeBoffB

C.BPreservationBofBprincipalB

D.BPerformanceBmeasurementB-BAnswerB



ABcompanyBisBexperiencingBtheBfollowingBlong-termBtrendBonBaBmonth-over-
monthBbasis:B•BSalesBareBincreasingBbyB$100,000,BaB15%Bincrease.B•BAccountsBreceiva
bleBareBincreasingBbyB$5,000,BaB1%Bincrease.B•BAccountsBpayableBareBincreasingBbyB$
20,000,BaB4%Bincrease.B•BLaborBexpensesBareBincreasingBbyB$40,000,BaB3%Bincrease.B
WithBallBotherBincome,Bexpenses,Blong-
termBassetsBandBliabilitiesBremainingBstable,BthisBtrendBwouldBMOSTBLIKELYBpromptBw
hatBactionBbyBtheBcompany?B

A.BFinancingBworkingBcapitalBrequirementsB

B.BRepayingBshort-termBdebtB

C.BReducingBlaborBcostsB

D.BFactoringBaccountsBreceivableB-BAnswerB



ABproperlyBdesignedBconcentrationBsystemBwillBpotentiallyBachieveBwhichBofBtheBfollow
ingBresults?BI.BIncreasedBauthorityBtoBfieldBofficesBII.BIncreasedBinvestmentBincomeBIII.B
ImprovedBabilityBtoBtakeBdiscountsBIV.BReducedBdependenceBonBthird-
partyBconcentrationBvendorsB

A.BIVBonlyB

B.BIBandBIIBonlyB

C.BIIBandBIIIBonly

BD.BII,BIII,BandBIVBonlyB-BAnswerc