AFP CTP Practice Exam Questions & Answers
5 Free Questions
· Last reviewed: September 9, 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
- 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
VA
ValidExamDumps Editorial Team
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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An investor is interested in acquiring ownership in a firm while ensuring predictable timing and amount of cash flow. Which instrument should the investor choose?
Correct Answer:
D
Explanation
Reverse positive pay is a cash management tool where the payor's bank sends a file of payment items back to the issuing company for verification before clearing. This allows the company to confirm which checks have been presented and catch fraudulent or unauthorized payments. It's a liquidity and fraud control mechanism that fits squarely within cash positioning and payment management.
One example of increased use of electronic payments for retail businesses to convert customer checks to cash at the counter more quickly is:
Correct Answer:
B
Explanation
When multiple divisions or subsidiaries consolidate their cash resources into a central pool, they can optimize liquidity by reducing overall debt levels and minimizing idle cash scattered across the organization. This centralized approach improves cash positioning and reduces the company's borrowing costs. Consolidation directly supports the core goal of maintaining adequate liquidity in a cost effective manner.
A farmer who plans to sell his/her corn crop in three months would benefit MOST from which of the following?
Correct Answer:
D
Explanation
A disaster recovery plan must account for how internal and external parties communicate and transfer data during a crisis. The systems infrastructure linking these parties, such as networks and data connections, represents a critical vulnerability that must be evaluated and protected. Without assessing this infrastructure, the plan cannot adequately address operational and financial risks during disruption.
Why is the valuation of common stocks different from that of preferred shares?
Correct Answer:
B
Explanation
A retail chain with hundreds of locations needs a decentralized collections system that gathers payments locally at each store, then deposits them into nearby field banks. This approach is practical and cost effective because shipping cash from every location to a single central depository would be inefficient and risky. The field banking structure optimizes cash positioning across the distributed network.
A company is starting a project to redesign its cash management information systems. What would be an important tool in this effort?
Correct Answer:
B
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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: 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:
Q1Q2Q4
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.
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.
Sample questions from this domain above:
Q3Q5
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.
