CTP Certification - The Ultimate Guide [Updated 2022]
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Certification Topics of AFP CTP: Certified Treasury Professional Exam
Take care of the interior as well as exterior partnerships (20%).
Analyze the influence of technologies on the treasury feature (12%).
Manage capital structure, take care of costs of long-lasting resources, and quantitatively examine long-term funding resource investments (18%).
Keep business liquidity required to meet existing and also future commitments in a timely and also cost-effective manner (25%).
Monitor and control corporate direct exposure to monetary, governing, and also functional danger (consisting of arising and also reputation risk) (25%).
NEW QUESTION 62
A company plans to perform an A/R cash analysis based on the following sales information:
60% of sales are collected within two months after the sale. After three months, $135,000 of January's sales has been collected. What was the percentage of January's sales collected in April?
- A. 60%
- B. 10%
- C. 90%
- D. 30%
Answer: D
NEW QUESTION 63
Based on the above information, before making the major acquisition, several large institutional shareholders have asked management to consider all of the following EXCEPT:
- A. a stock dividend.
- B. a special dividend.
- C. a stock split.
- D. a stock repurchase.
Answer: C
NEW QUESTION 64
All of the following are typical uses of a zero balance account EXCEPT:
- A. dividend payments.
- B. trade accounts payable.
- C. payroll.
- D. overnight investments.
Answer: D
NEW QUESTION 65
Which agency implements monetary policy through purchases and sales of treasury securities?
- A. Office of the Comptroller of the Currency
- B. Fannie Mae
- C. Federal Deposit Insurance Corporation
- D. Federal Reserve
Answer: D
NEW QUESTION 66
The role of the depository bank in the check-clearing process is typically which of the following?
- A. To inspect the check for proper signature
- B. To place a hold on the check until cleared
- C. To ensure that the check is not stale-dated
- D. To encode the check amount on the MICR line
Answer: D
NEW QUESTION 67
A portfolio manager purchases a floating rate mortgage backed security that would
currently provide a 4% yield to the company. Since mortgage rates have been fluctuating significantly over the past month, the manager is thinking about entering into an interest rate swap to hedge against the rate movements. Although the manager would remove most of the price sensitivity of the asset by executing the swap, it would also lower the total yield on the investment due to swapcosts. What objective in the company investment policy is guiding the portfolio manager's decision?
- A. Risk/return trade off
- B. Risk analysis
- C. Performance measurement
- D. Preservation of principal
Answer: A
NEW QUESTION 68
A company's Chief Financial Officer assigns a team reporting to the Treasurer to restructure the company's complex debt instruments and equipment leasing arrangements. The team executes the required settlement transactions using wire payments to facilitate the new debt structure, and in the process violates the lending requirements of the company's bank. What should the Treasurer have done to prevent the violation?
- A. Restricted access to the company's payment processing system.
- B. Established covenant monitoring and compliance controls.
- C. Set up an exception management process.
- D. Segregated the team's duties for the debt structuring and transaction activities.
Answer: B
NEW QUESTION 69
A company recently implemented a treasury code of conduct, which defined appropriate actions and business behaviors. The company developed policies and procedures that assigned duties to managers, and distributed the code to all treasury employees. The treasury group could have improved upon this implementation by doing which one of the following?
- A. Having the code of conduct reviewed by the marketing department
- B. Having the code certified under Sarbanes-Oxley Act requirements
- C. Providing training on the code to all employees
- D. Incorporating the code under its disaster recovery plan
Answer: C
NEW QUESTION 70
A multinational corporation with many FSPs requires a TMS that can display extensive and complex information in an effective manner. The corporation will be looking for a TMS with what functionality?
- A. Data integration
- B. Dashboards
- C. Bank administration
- D. Modularity
Answer: B
NEW QUESTION 71
Which of the following trade payment methods virtually eliminates the seller's credit risk?
- A. Consignment
- B. Bankers' acceptance
- C. Cash before delivery
- D. Countertrade
Answer: C
NEW QUESTION 72
With the advent of the euro, many U.S. companies have seen a reduction in their number of foreign currency transactions. As a result, these U.S. companies have benefited from which of the following?
I) Reduced FX transaction costs
II) Consolidated banking relationships
III) Simplified exchange risk management
IV) Reduced need to monitor foreign political climates
- A. I and II
- B. I, III, and IV
- C. II and III
- D. I, II, and III
Answer: D
NEW QUESTION 73
An analyst for a landscaping company wants to adjust her cash-flow forecast to account for the seasonality of outflows. How can this be accomplished?
- A. Accounts receivable balance pattern
- B. Regression analysis
- C. Contingency forecasting
- D. Simple moving average
Answer: B
NEW QUESTION 74
The goal of investor relations is to:
- A. ensure that a company's securities achieve a fair valuation in the marketplace.
- B. ensure equity analysts have all available company information at any point in time.
- C. maintain the company's stock listing on the NYSE.
- D. make sure all shareholders cast a vote at the annual meeting.
Answer: A
NEW QUESTION 75
Which of the following functions is LEAST likely to be part of a cash manager's responsibilities?
- A. Bank compensation
- B. Forecasting
- C. Funds movement
- D. Long-term financing
Answer: D
NEW QUESTION 76
A major toy retailer operates 65 retail stores throughout the Midwest. Which of the following credit terms is MOST LIKELY to be offered to this company by its suppliers?
- A. Factoring
- B. Seasonal dating
- C. Letter of credit
- D. Floor planning
Answer: B
NEW QUESTION 77
QRT Corporation uses exponential smoothing in its cash flow forecasting model. Five days are used to calculate the moving average forecast.
If the value of the smoothing constant is .60, what is the exponential smoothing forecast for day 7?
- A. $2,400,000
- B. $2,000,000
- C. $2,052,000
- D. $2,060,000
Answer: C
NEW QUESTION 78
Which of the following would MOST LIKELY cause a decrease in a company's deposited checks availability?
- A. The depository bank institutes an earlier deposit deadline.
- B. The company encodes its own checks prior to deposit.
- C. The company's lockbox bank implements weekend processing.
- D. The Federal Reserve implements same-day presentment.
Answer: A
NEW QUESTION 79
The primary bank for a major multinational company would use an overlay structure for euro zone cash concentration under which of the following circumstances?
- A. The primary bank cannot provide full domestic banking services and thus must sweep surplus funds from local banks.
- B. There is excessive competition among local banks for cash management business.
- C. It is cost effective for companies to provide their own in-house banking services.
- D. The local banks can provide full pooling arrangements and not sweep surplus funds.
Answer: A
NEW QUESTION 80
A residential mortgage company that wants to collect monthly payments from customers electronically via the ACH would initiate:
- A. PPD credits.
- B. CCD debits.
- C. PPD debits.
- D. CCD credits.
Answer: C
NEW QUESTION 81
On the basis of the information above, what level of net collected balances is necessary to compensate a bank for $1.00 worth of services?
- A. $157
- B. $154
- C. $159
- D. $126
Answer: B
NEW QUESTION 82
The delay between the time a lockbox site receives a check and the check is deposited is called:
- A. processing float.
- B. mail float.
- C. Fed float.
- D. availability float.
Answer: A
NEW QUESTION 83
The U.S. Congress establishedthe.
- A. UCC.
- B. OC
- C. OFAC.
- D. FinCEN.
Answer: B
NEW QUESTION 84
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