CTP - Chapter 1 Questions and Answers Updated 2026

CTP - Chapter 1
Questions and
Answers Updated
2026
PrimaryBdutiesBofBTreasurerB-BAnswer-BOverallBfinancialBriskBandBFXBrisk

-BExternalBfinancingB(LongBandBShort)

-BBankBandBFIBrelationship

-BDayBtoBdayBliquidityBandBcashBmanagement

-BSTBandBLTBinvestments

-BCreatingBtreasuryBpoliciesBandBprocedures

-BManageBpaymentsB(internationalBandBdomestic)



CorporateBGovernanceB-
BAnswerTheB"management"BofBcompanyBmanagersBtoBmakeBsureBthatBtheyBactBinBthe
BbestBinterestBofBtheBcompanyBandBitsBshareholders



AgencyBProblemB-BAnswer-
BTheBissueBthatBManagementBofBaBcompanyBmayBactBinBtheirBownBbestBinterestBinste
adBofBactingBinBtheBbestBinterestBofBtheBshareholders.

-BTheBconcernBthatBmanagementBofBaBcompanyBisBmoreBinterestedBinBitsBownBself-
interestBthanBinBtheBinterestBofBtheBshareholdersBofBtheBcompany.

-BTheBgoalBofBaBcompanyBisBtoBincreaseBtheBnetBworthBofBitsBshareholders.



GuidelinesBforBIndependentBDirectorsB-BAnswer-
BIndependentBdirectorsBmustBmakeBupBaBmajorityBofBtheBboard.

, -
BIndependentBdirectorsBmustBnotBhaveBworkedBwithBtheBcompanyBasBanBauditorB(orBf
orBtheBcompany)BinBtheBlastB5ByearsB(coolingBoffBperiod)

-BCannotBbeBanBownerB(ex.Bshareholder)BorBofficerBofBtheBcompany.



InvestorBRelationsB-
BAnswerResponsibleBforBtheBreleaseBofBinformationBtoBstockBandBbondholdersBofBtheB
company.BThisBisBnotBlimitedBtoBfinancialBinformationBbutBcouldBbeBanyBtimeBofBinfor
mationBthatBisBrelevantBtoBtheBcompany'sBcurrentBandBfutureBshareholdersBorBbondhol
ders.



AccordingBtoBEssentialsBofBTreasuryBManagement,B4thBEd,BhowBisBTreasuryBManageme
ntBDefined?B-
BAnswerTreasuryBManagementB"coversBtheBsafeguardingBandBefficientBuseBofBfinancialB
assetsBforBtheBbenefitBofBaBcompanyBandBitsBvariousBstakeholders."



PrimaryBgoalBofBTreasuryBManagementBaccordingBtoBEssentialsBofBTreasuryBManageme
nt,B4thBEdB-
BAnswerEssentialsBexplainsBthatBtheB"primaryBgoalBofBTreasuryBManagementBisBtoBman
ageBtheBcashBandBrelatedBfinancialBassetsBofBanBorganizationBasBefficientlyBasBpossible
BtoBprovideBtheBfinancialBflexibilityBneededBtoBachieveBtheBorganization'sBobjectivesBin
BaBmannerBconsistentBwithBtheBorganizationsBoverallBstrategicBplan."



WhatB4BTreasuryBManagementBObjectivesBareBidentifiedBasB"WorkingBCapitalBManage
ment"?B-BAnswer-BMaintainBLiquidity

-BOptimizeBCashBResources

-BMaintainBAccessBtoBShortBTermBFinancing

-BManageBInvestments



6BtasksBareBidentifiedBfor

DailyBCashBManagementB-BAnswer-BPreparingBcashBpositionBworksheet

-BMonitorBcashBbalanceB/Bdeposits

-BCollect,BconcentrateBandBdisburseBcashBasBneeded