1|Page
CTP – Certified Treasury Professional | Complete
Certification Exam Review | Study Guide & Practice
Tests | 2026/2027.
Table of Contents
Treasury Management Fundamentals
Cash Management
Liquidity Management
Financial Risk Management
Treasury Operations
Question 1: What is the primary role of the treasury department in an
organization?
A) Maximizing sales revenue
B) Managing the organization's financial assets and liabilities to optimize
liquidity, mitigate risk, and achieve financial objectives
C) Preparing tax returns
D) Managing human resources
Correct Answer: B
The treasury department manages the organization's financial assets and
liabilities to optimize liquidity, mitigate financial risk, and achieve strategic
financial objectives. Treasury is distinct from accounting, which focuses on
recording and reporting financial transactions.
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Question 2: Which of the following best describes the relationship between
treasury and finance?
A) Treasury and finance are the same function
B) Treasury is a subset of finance focused on managing cash, investments, and
financial risk
C) Finance is a subset of treasury focused on accounting
D) Treasury focuses on tax, finance focuses on auditing
Correct Answer: B
Treasury is a subset of the broader finance function, specifically focused on
managing cash, investments, funding, and financial risk. Finance encompasses
a wider range of activities including financial planning, analysis, and reporting.
Question 3: What is the primary objective of working capital management?
A) Maximizing long-term debt
B) Managing short-term assets and liabilities to ensure the organization can
meet its operational needs and obligations
C) Minimizing shareholder equity
D) Maximizing capital expenditures
Correct Answer: B
Working capital management involves managing short-term assets (cash,
accounts receivable, inventory) and short-term liabilities (accounts payable,
short-term debt) to ensure the organization can meet its operational needs and
financial obligations. The goal is to optimize the balance between liquidity and
profitability.
Question 4: Which of the following is a key responsibility of a corporate
treasurer?
A) Managing the organization's cash position and liquidity
B) Preparing financial statements
C) Conducting internal audits
D) Managing employee benefits
Correct Answer: A
Managing the organization's cash position and liquidity is a core responsibility
of the corporate treasurer. Other responsibilities include managing investments,
funding, financial risk, and banking relationships. Preparing financial
statements is typically the responsibility of the controller or CFO.
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Question 5: What is the difference between a centralized and decentralized
treasury structure?
A) Centralized treasury has no control over subsidiaries; decentralized treasury
has full control
B) Centralized treasury manages cash and risk at the corporate level;
decentralized treasury allows subsidiaries to manage their own treasury
functions
C) They are the same
D) Centralized treasury is for small companies; decentralized treasury is for
large companies
Correct Answer: B
A centralized treasury structure manages cash, investments, and risk at the
corporate level, providing greater control and economies of scale. A
decentralized structure allows subsidiaries or business units to manage their
own treasury functions, providing greater flexibility but potentially less control.
Question 6: What is the purpose of a treasury management system (TMS)?
A) To automate and streamline treasury operations, including cash positioning,
forecasting, and risk management
B) To prepare tax returns
C) To manage human resources
D) To conduct marketing research
Correct Answer: A
A treasury management system (TMS) automates and streamlines treasury
operations, including cash positioning, cash forecasting, bank relationship
management, investment tracking, and financial risk management. A TMS
provides real-time visibility into the organization's cash and financial positions.
Question 7: Which of the following is a key performance indicator (KPI) for
treasury?
A) Employee turnover rate
B) Days sales outstanding (DSO)
C) Customer satisfaction score
D) Marketing ROI
Correct Answer: B
Days sales outstanding (DSO) is a key treasury performance indicator that
, 4|Page
measures the average number of days it takes to collect payment after a sale.
Other treasury KPIs include days payable outstanding (DPO), cash conversion
cycle, and forecast accuracy. Employee turnover and marketing metrics are not
treasury KPIs.
Question 8: What is the purpose of a bank relationship management program?
A) To maximize the number of bank accounts
B) To optimize banking services, fees, and credit availability while maintaining
strong relationships with key banking partners
C) To minimize the number of bank relationships
D) To eliminate all banking fees
Correct Answer: B
A bank relationship management program optimizes banking services, fees, and
credit availability while maintaining strong relationships with key banking
partners. Treasury manages bank relationships to ensure the organization
receives competitive pricing, quality service, and adequate credit capacity.
Question 9: What is the role of the CFO in relation to treasury?
A) The CFO oversees the treasury function and ensures alignment with the
organization's strategic financial objectives
B) The CFO has no involvement in treasury
C) The CFO manages day-to-day treasury operations
D) The CFO focuses only on tax planning
Correct Answer: A
The CFO (Chief Financial Officer) oversees the treasury function and ensures
alignment with the organization's strategic financial objectives. The CFO
provides strategic direction, while the treasurer manages day-to-day treasury
operations.
Question 10: Which of the following is a primary function of treasury?
A) Cash management
B) Financial risk management
C) Funding and capital structure management
D) All of the above
Correct Answer: D
Treasury's primary functions include cash management, financial risk
CTP – Certified Treasury Professional | Complete
Certification Exam Review | Study Guide & Practice
Tests | 2026/2027.
Table of Contents
Treasury Management Fundamentals
Cash Management
Liquidity Management
Financial Risk Management
Treasury Operations
Question 1: What is the primary role of the treasury department in an
organization?
A) Maximizing sales revenue
B) Managing the organization's financial assets and liabilities to optimize
liquidity, mitigate risk, and achieve financial objectives
C) Preparing tax returns
D) Managing human resources
Correct Answer: B
The treasury department manages the organization's financial assets and
liabilities to optimize liquidity, mitigate financial risk, and achieve strategic
financial objectives. Treasury is distinct from accounting, which focuses on
recording and reporting financial transactions.
,2|Page
Question 2: Which of the following best describes the relationship between
treasury and finance?
A) Treasury and finance are the same function
B) Treasury is a subset of finance focused on managing cash, investments, and
financial risk
C) Finance is a subset of treasury focused on accounting
D) Treasury focuses on tax, finance focuses on auditing
Correct Answer: B
Treasury is a subset of the broader finance function, specifically focused on
managing cash, investments, funding, and financial risk. Finance encompasses
a wider range of activities including financial planning, analysis, and reporting.
Question 3: What is the primary objective of working capital management?
A) Maximizing long-term debt
B) Managing short-term assets and liabilities to ensure the organization can
meet its operational needs and obligations
C) Minimizing shareholder equity
D) Maximizing capital expenditures
Correct Answer: B
Working capital management involves managing short-term assets (cash,
accounts receivable, inventory) and short-term liabilities (accounts payable,
short-term debt) to ensure the organization can meet its operational needs and
financial obligations. The goal is to optimize the balance between liquidity and
profitability.
Question 4: Which of the following is a key responsibility of a corporate
treasurer?
A) Managing the organization's cash position and liquidity
B) Preparing financial statements
C) Conducting internal audits
D) Managing employee benefits
Correct Answer: A
Managing the organization's cash position and liquidity is a core responsibility
of the corporate treasurer. Other responsibilities include managing investments,
funding, financial risk, and banking relationships. Preparing financial
statements is typically the responsibility of the controller or CFO.
,3|Page
Question 5: What is the difference between a centralized and decentralized
treasury structure?
A) Centralized treasury has no control over subsidiaries; decentralized treasury
has full control
B) Centralized treasury manages cash and risk at the corporate level;
decentralized treasury allows subsidiaries to manage their own treasury
functions
C) They are the same
D) Centralized treasury is for small companies; decentralized treasury is for
large companies
Correct Answer: B
A centralized treasury structure manages cash, investments, and risk at the
corporate level, providing greater control and economies of scale. A
decentralized structure allows subsidiaries or business units to manage their
own treasury functions, providing greater flexibility but potentially less control.
Question 6: What is the purpose of a treasury management system (TMS)?
A) To automate and streamline treasury operations, including cash positioning,
forecasting, and risk management
B) To prepare tax returns
C) To manage human resources
D) To conduct marketing research
Correct Answer: A
A treasury management system (TMS) automates and streamlines treasury
operations, including cash positioning, cash forecasting, bank relationship
management, investment tracking, and financial risk management. A TMS
provides real-time visibility into the organization's cash and financial positions.
Question 7: Which of the following is a key performance indicator (KPI) for
treasury?
A) Employee turnover rate
B) Days sales outstanding (DSO)
C) Customer satisfaction score
D) Marketing ROI
Correct Answer: B
Days sales outstanding (DSO) is a key treasury performance indicator that
, 4|Page
measures the average number of days it takes to collect payment after a sale.
Other treasury KPIs include days payable outstanding (DPO), cash conversion
cycle, and forecast accuracy. Employee turnover and marketing metrics are not
treasury KPIs.
Question 8: What is the purpose of a bank relationship management program?
A) To maximize the number of bank accounts
B) To optimize banking services, fees, and credit availability while maintaining
strong relationships with key banking partners
C) To minimize the number of bank relationships
D) To eliminate all banking fees
Correct Answer: B
A bank relationship management program optimizes banking services, fees, and
credit availability while maintaining strong relationships with key banking
partners. Treasury manages bank relationships to ensure the organization
receives competitive pricing, quality service, and adequate credit capacity.
Question 9: What is the role of the CFO in relation to treasury?
A) The CFO oversees the treasury function and ensures alignment with the
organization's strategic financial objectives
B) The CFO has no involvement in treasury
C) The CFO manages day-to-day treasury operations
D) The CFO focuses only on tax planning
Correct Answer: A
The CFO (Chief Financial Officer) oversees the treasury function and ensures
alignment with the organization's strategic financial objectives. The CFO
provides strategic direction, while the treasurer manages day-to-day treasury
operations.
Question 10: Which of the following is a primary function of treasury?
A) Cash management
B) Financial risk management
C) Funding and capital structure management
D) All of the above
Correct Answer: D
Treasury's primary functions include cash management, financial risk
