AFP CTP Practice Exam Questions & Answers
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· Last reviewed: October 23, 2026
· Prepared & Reviewed by the ValidExamDumps Editorial Team
Exam Facts
AFP CTP Exam Details
Key details for this exam, checked against the published exam outline
1076
Practice Questions (Our Bank)
210 minutes
Exam Duration
300 out of 500 (scaled score)
Passing Score
- Exam Code
- CTP
- Full Name
- Certified Treasury Professional
- Issuing Body
- Association for Financial Professionals (AFP)
- Question Format (Our Bank)
- Multiple Choice
- Official Exam Fee
- USD 1,420 (non-member, final deadline). includes one-year AFP membership
- Delivery
- Online proctored through Pearson Professional Assessments
- Eligibility
- Two years of full-time relevant work experience in corporate treasury or cash management, or one year of relevant experience plus a master's degree in a related field
- Validity
- Lifetime
Practice Questions
Free CTP Practice Questions
Each question shows the correct answer and an explanation of why it is right
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Every question and its answer is checked by our CTP exam
preparation team, who also write the explanation shown with each one.
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A globally diversified manufacturing company can manage its liquidity more effectively by:
Correct Answer:
A
Explanation
When you have positive cash, you need to compare the net benefit of each option. Paying down the overdraft at 10% saves you that interest cost. Using the investment account at 8% after-tax earns less than the overdraft costs. The earnings credit of 8% doesn't help since service fees exceed it anyway. The note at 9.5% should not be paid early. Since the investment return doesn't cover costs and other options involve expense, leaving funds in the account avoids unnecessary costs while keeping liquidity available.
An evolving technology to aid in eliminating the need to rekey data is:
Correct Answer:
D
Explanation
A company facing a 60-day inventory purchase needs visibility into cash needs for that timeframe. A medium-term forecast typically covers several weeks to several months and would show when cash shortfalls might occur. A short-term forecast might miss the 60-day window. A long-term forecast is too broad. Daily cash reporting alone doesn't plan ahead. A medium-term forecast bridges the gap between immediate daily needs and longer strategic planning.
The analysis of a company launching an initial public offering includes disclosure of information that may interest investors. It also includes confirmation that financial statements reflect true value under GAAP and other pertinent areas of a company's operations. What is this analysis known as?
Correct Answer:
D
Explanation
Cash concentration transfers can create ledger overdrafts when the timing of money going out precedes the timing of deposits being credited. An ACH transfer of anticipated deposits assumes money will arrive that hasn't actually been received yet. If those deposits fail to clear, the company ends up overdrawn at the bank. Wire transfers are immediate and certain. Physical check deposits have known timing. Using available collected balances is safe. Only anticipated deposits create real timing risk.
Company A has operated a Pension Plan since 1985. Despite a recent surge in asset values, the plan remains significantly underfunded. With the passage of the Pension Protection Act of 2006, Company A will be need to:
Correct Answer:
C
Explanation
A company has a committed line of credit of 5.5 million with 4 million available. The wire for 5.5 million exceeds the available amount. Banks often impose guidance lines that are lower than the committed line as a risk management tool. This guidance line acts as a practical ceiling even though the commitment is higher. The bank likely told the company its guidance line was lower than the wire amount requested. This protects the bank while staying within the legal commitment.
The owner of XYZ Company just completed an initial public offering. Which of the following is the MOST LIKELY outcome?
Correct Answer:
B
Explanation
ABC Company faces significant payment risk given the customer's history of non-payment on the final installment. A commercial letter of credit guarantees payment by the customer's bank, which substitutes the bank's creditworthiness for the customer's. This protects ABC from the risk that the customer will refuse payment again. Other trade financing tools lack this payment certainty.
ABC Company, a U.S. company, has an overseas customer, XYZ Inc., who wants to purchase $3.1 million of equipment from ABC Co. XYZ Inc. wants to structure payment by paying 10% at time of order, 40% at time of shipment and the remaining 50% at time of receipt of the equipment. The last time XYZ Inc. purchased equipment from ABC Co. they never paid the final 50%, claiming the equipment did not work properly. Which of the following can ABC Co. use for this transaction to guarantee payment?
Correct Answer:
D
Explanation
The customer saves 1,000 dollars by paying in 10 days instead of 30 days, which is 2% of 50,000 dollars. The present value calculation discounts this savings back 20 days. Using the discount formula with 11% annual cost of capital, the present value of the savings is approximately 94 dollars. Subtracting this from the discounted invoice amount of 50,000 dollars gives 48,852 dollars. This demonstrates how to evaluate accelerating cash flow through trade discounts using the company's cost of capital.
A shareholder right found in many corporate charters is the preemptive right which provides:
Correct Answer:
A
Explanation
Financial institution risk relates to having too much cash concentrated with a single bank relative to that bank's deposit insurance coverage. Company A holds 175,000 to 250,000 at one bank. Company X holds 90,000 to 125,000 at one bank. Since the FDIC insures up to 250,000, Company A's higher balances regularly exceed safe coverage limits. Company X's balances typically stay within safe limits. Company A faces greater risk of uninsured deposits if the bank fails. Sales volume alone doesn't determine risk here.
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Study Guide
What the AFP CTP Exam Covers
4 domains from the AFP CTP exam outline, with approximate weightings. Every sample question above is tagged
with the domain it comes from
Domain 1: Domain 1 Maintain corporate liquidity required to meet current and future obligations in a timely and cost effective manner
Master cash positioning through short-term investing and borrowing, manage cash flows, and optimize banking structures. This domain covers managing foreign exchange exposure, trade financing, intercompany financing, bank account reconciliation, and treasury operations optimization to ensure the company has sufficient liquid resources when needed.
Sample questions from this domain above:
Q1Q2Q3Q4Q5Q7
Domain 2: Manage capital structure, manage costs of long-term capital, and quantitatively evaluate long-term capital resource investments
Evaluate long-term financing decisions through negotiating syndicated agreements, managing debt and equity issuances, and assessing market conditions. Apply hedging strategies for interest rate, foreign exchange, and commodity exposure while managing investment portfolios and evaluating the financial impact of major corporate transactions like mergers and acquisitions.
Domain 3: Manage internal and external relationships
Build and maintain effective relationships with banks, financial service providers, and internal stakeholders across accounting, IT, legal, and tax functions. Select and negotiate agreements with external providers to ensure competitive pricing and best practices while serving as a trusted advisor on treasury strategy and project finance matters.
Sample question from this domain above:
Q6
Domain 4: Monitor and control corporate exposure to financial, regulatory, and operational risk (including emerging and reputational risk)
Establish and enforce treasury policies covering investment, foreign exchange, risk management, and hedging activities. Detect and mitigate fraud, benchmark performance against industry standards, evaluate counterparty risk, and develop business continuity plans while ensuring compliance with regulatory requirements and managing merchant services programs.
FAQ
CTP Exam FAQ
Common questions about the exam itself
What are the CTP exam eligibility requirements?
You need two years of full-time work experience in corporate treasury, cash management, or related finance roles. Alternatively, you can qualify with one year of relevant experience if you hold a master's degree in a related field. You can register and sit for the exam before meeting all eligibility requirements, but you won't receive the credential until AFP verifies your full eligibility.
How long is the CTP exam and how is it scored?
The exam is 210 minutes (3.5 hours) long and contains 170 questions. Your raw score is converted to a scaled score between 200 and 500, and you need a scaled score of at least 300 to pass.
What happens if I fail the CTP exam?
You can retake the exam, though you'll need to pay the exam fee again and submit a new application. AFP allows multiple attempts, but you should check their current retake policies and any waiting periods between attempts on their official website.
How much does the CTP exam cost?
Non-member exam fees are USD 1,420 at the final deadline, which includes one year of AFP membership. AFP members pay USD 925 for early registration and USD 1,025 at the final deadline, with no membership fee included.
How long is the CTP certification valid?
Your CTP credential is valid for three years. To maintain it after that period, you must earn and report a prescribed number of continuing education credits in finance and business topics. If you don't complete the required credits, your certification can be revoked.
What job roles typically hold the CTP certification?
CTP holders typically work as corporate treasury professionals, treasury managers, cash managers, finance managers, and corporate finance specialists in mid-sized to large organizations. They support treasury teams, corporate finance departments, and executive leadership in managing liquidity, capital structure, banking relationships, and financial risk.
How does CTP compare to other AFP certifications?
The CTP is AFP's flagship treasury certification, recognized globally as the leading credential in treasury management. AFP also offers the Certified Corporate Financial Planning and Analysis Professional (FPAC) certification, which focuses on financial planning and analysis rather than treasury operations. The CTP is for professionals managing cash, liquidity, and capital, while FPAC is for those in FP and A roles.
Which domain of the CTP exam do most candidates find most challenging?
Liquidity management and risk control typically represent the largest portion of exam questions and require both conceptual knowledge and practical judgment. Many candidates find the quantitative aspects challenging, though the exam includes only about 20 to 25 formula-based questions, so focus on understanding the core formulas like present value and future value calculations rather than memorizing all 50 formulas.
How long should I study to prepare for the CTP exam?
Study duration varies based on your treasury background and expertise. Candidates with direct treasury experience typically need 2 to 3 months of preparation, while those new to the field may require 4 to 6 months. AFP's official CTP Exam Prep Platform includes over 850 practice questions, chapter tests, and a full 170-question practice exam to help you assess your readiness.
What is the format of the CTP exam questions?
The exam uses multiple-choice and scenario-based questions that reflect real-world treasury situations. Questions test both conceptual knowledge and practical judgment, requiring you to apply treasury concepts to actual business scenarios involving liquidity management, capital decisions, stakeholder relationships, and risk control.
