CTP Exam Practice Questions with
Multiple Choices and Verified
Answers Latest 2026-2027 GRADED A+
Over the past 3 years XYZ Company has expanded into multiple countries and
significantly grown its banking relationships. The company now incurs significant
expenses related to payment transaction costs and maintaining multiple bank
connections. What should the company use to combat these rising costs?
A. SWIFT network
B. ACH Network
C. CHIPS network
D. TARGET 2 - CORRECT ANSWERS-A
An Instrument that gives the right to buy a stated number of shares of common stock at a
specified price is known as
a. An equity warrant
B. a Put Option
C. A zero Coupon Bond
D. A subordinate debenture - CORRECT ANSWERS-A
An arrangement in which a borrower makes periodic payments to a separate custodial
account that is used to repay debt is known as a
A. sinking fund
B. Balloon payment
C. Mortgage
D. Zero-Coupon Bond - CORRECT ANSWERS-A
Netting is used by which of the following as a cross-border payment technique?
A. European giro providers B. Foreign subsidiaries of a company C. Counterparties in a
letter of credit transaction
D. TARGET participants - CORRECT ANSWERS-D
Which of the following is a characteristic of giro systems used in countries in Europe?
A. They Operate through their postal service
B. They are primarily used for company-to-company payments
C. they do not replace checks for the payment of bills
D. They do not allow the use of direct debits and credits - CORRECT ANSWERS-A
,A company is based in the US and has an operating subsidiary in Germany. With a stable
US dollar and depreciating Euro, the Company's cash manager may elect to:
A. Pool excess funds in the US to offset Germany deficits
B. Implement a dollar-based multilateral netting system
C. Start lending receivables from the German subsidiary
D. establish a multi currency account in the US - CORRECT ANSWERS-C
A bank issues a letter of credit (L/C) and receives a request for payment under the L/C. The
buyer notifies the issuing bank not to make payment because there is a dispute over the
quality of the merchandise. However, the documents received fully comply with the terms
of the L/C. Which of the following statements is true?
A. The buyer may immediately return the merchandise and cancel the L/C.
B. The bank may delay payment until reimbursed by the buyer.
C. The bank may delay payment, provided the seller is notified of the dispute within three
business days. D. The bank must make payment and is entitled to immediate
reimbursement from the buyer. - CORRECT ANSWERS-
The KEY decision in using CCD+ and CTX formats for B2B payments is:
A. whether to keep the payment and remittance information together or separate.
B. whether to use the Internet or an EDI spoke to transmit electronic payments.
C. whether to use an EDI or a UN/EDIFACT protocol to transfer the value electronically.
D. whether an evaluated receipts or paid-on-production technique is being used for the
transfer. - CORRECT ANSWERS-
which one of the following ties a user's private key to a user's public key
A. Digital signature
B. Digital certificate
C. digitized signature
D. digital Token - CORRECT ANSWERS-B
For a defined benefit plan,
AFP CTP : Practice Test
A. plan assets equal plan liabilities. B. plan assets can be less than plan liabilities.
C. plan assets are greater than plan equity.
D. plan assets always equal plan equity. - CORRECT ANSWERS-B
With respect to the Sarbanes-Oxley Act, a company may avoid additional reporting
requirements by:
, A. issuing shares in an IPO.
B. providing an SSAE 16.
C. redeeming bond issues.
D. delisting its securities. - CORRECT ANSWERS-D
Which of the following would be expected to happen on the ex-dividend date?
A. The stock is sold with the dividend attached.
B. The stock price drops.
C. The stock's volume increases.
D. The stock's dividend is paid. - CORRECT ANSWERS-B
Which of the following is subject to transaction exposure?
A. A U.S. company's foreign subsidiary in Japan has a receivable denominated in Yen.
B. A Japanese company's foreign subsidiary in the U.S. has a receivable denominated in
Yen.
C. A U.S. company's foreign subsidiary in Japan has a payable denominated in Yen.
D. A Japanese company's foreign subsidiary in the U.S. has a payable denominated in
dollars. - CORRECT ANSWERS-B
Which of the following is NOT a key area to consider when establishing treasury policies?
A. Equity method investments accounting
B. Medium-term financing
C. Management reporting
D. Foreign currency management - CORRECT ANSWERS-C
The Governmental Accounting Standards Board (GASB) is the authoritative standard-
setting body for which of the following?
A. Private universities
B. Healthcare organizations
C. Public works agencies
D. Publicly traded companies - CORRECT ANSWERS-c
A cash manager has determined that the break-even amount for justifying a wire transfer
over an ACH for concentration of funds is $145,000. Using a wire instead of an ACH
givesthe company use of the funds two days earlier to make overnight investments. Based
on a wire transfer cost of $10.00 and an ACH transaction cost of $0.70, what is the
company's overnight investment interest rate on a 365-day year basis?
Multiple Choices and Verified
Answers Latest 2026-2027 GRADED A+
Over the past 3 years XYZ Company has expanded into multiple countries and
significantly grown its banking relationships. The company now incurs significant
expenses related to payment transaction costs and maintaining multiple bank
connections. What should the company use to combat these rising costs?
A. SWIFT network
B. ACH Network
C. CHIPS network
D. TARGET 2 - CORRECT ANSWERS-A
An Instrument that gives the right to buy a stated number of shares of common stock at a
specified price is known as
a. An equity warrant
B. a Put Option
C. A zero Coupon Bond
D. A subordinate debenture - CORRECT ANSWERS-A
An arrangement in which a borrower makes periodic payments to a separate custodial
account that is used to repay debt is known as a
A. sinking fund
B. Balloon payment
C. Mortgage
D. Zero-Coupon Bond - CORRECT ANSWERS-A
Netting is used by which of the following as a cross-border payment technique?
A. European giro providers B. Foreign subsidiaries of a company C. Counterparties in a
letter of credit transaction
D. TARGET participants - CORRECT ANSWERS-D
Which of the following is a characteristic of giro systems used in countries in Europe?
A. They Operate through their postal service
B. They are primarily used for company-to-company payments
C. they do not replace checks for the payment of bills
D. They do not allow the use of direct debits and credits - CORRECT ANSWERS-A
,A company is based in the US and has an operating subsidiary in Germany. With a stable
US dollar and depreciating Euro, the Company's cash manager may elect to:
A. Pool excess funds in the US to offset Germany deficits
B. Implement a dollar-based multilateral netting system
C. Start lending receivables from the German subsidiary
D. establish a multi currency account in the US - CORRECT ANSWERS-C
A bank issues a letter of credit (L/C) and receives a request for payment under the L/C. The
buyer notifies the issuing bank not to make payment because there is a dispute over the
quality of the merchandise. However, the documents received fully comply with the terms
of the L/C. Which of the following statements is true?
A. The buyer may immediately return the merchandise and cancel the L/C.
B. The bank may delay payment until reimbursed by the buyer.
C. The bank may delay payment, provided the seller is notified of the dispute within three
business days. D. The bank must make payment and is entitled to immediate
reimbursement from the buyer. - CORRECT ANSWERS-
The KEY decision in using CCD+ and CTX formats for B2B payments is:
A. whether to keep the payment and remittance information together or separate.
B. whether to use the Internet or an EDI spoke to transmit electronic payments.
C. whether to use an EDI or a UN/EDIFACT protocol to transfer the value electronically.
D. whether an evaluated receipts or paid-on-production technique is being used for the
transfer. - CORRECT ANSWERS-
which one of the following ties a user's private key to a user's public key
A. Digital signature
B. Digital certificate
C. digitized signature
D. digital Token - CORRECT ANSWERS-B
For a defined benefit plan,
AFP CTP : Practice Test
A. plan assets equal plan liabilities. B. plan assets can be less than plan liabilities.
C. plan assets are greater than plan equity.
D. plan assets always equal plan equity. - CORRECT ANSWERS-B
With respect to the Sarbanes-Oxley Act, a company may avoid additional reporting
requirements by:
, A. issuing shares in an IPO.
B. providing an SSAE 16.
C. redeeming bond issues.
D. delisting its securities. - CORRECT ANSWERS-D
Which of the following would be expected to happen on the ex-dividend date?
A. The stock is sold with the dividend attached.
B. The stock price drops.
C. The stock's volume increases.
D. The stock's dividend is paid. - CORRECT ANSWERS-B
Which of the following is subject to transaction exposure?
A. A U.S. company's foreign subsidiary in Japan has a receivable denominated in Yen.
B. A Japanese company's foreign subsidiary in the U.S. has a receivable denominated in
Yen.
C. A U.S. company's foreign subsidiary in Japan has a payable denominated in Yen.
D. A Japanese company's foreign subsidiary in the U.S. has a payable denominated in
dollars. - CORRECT ANSWERS-B
Which of the following is NOT a key area to consider when establishing treasury policies?
A. Equity method investments accounting
B. Medium-term financing
C. Management reporting
D. Foreign currency management - CORRECT ANSWERS-C
The Governmental Accounting Standards Board (GASB) is the authoritative standard-
setting body for which of the following?
A. Private universities
B. Healthcare organizations
C. Public works agencies
D. Publicly traded companies - CORRECT ANSWERS-c
A cash manager has determined that the break-even amount for justifying a wire transfer
over an ACH for concentration of funds is $145,000. Using a wire instead of an ACH
givesthe company use of the funds two days earlier to make overnight investments. Based
on a wire transfer cost of $10.00 and an ACH transaction cost of $0.70, what is the
company's overnight investment interest rate on a 365-day year basis?
