[2023] Pass CTP Exam - Real Questions and Answers
CTP Exam Questions Get Updated [2023] with Correct Answers
AFP CTP certification exam covers a wide range of topics related to treasury management, including cash management, risk management, financial analysis, and treasury operations. CTP exam is designed to test candidates' knowledge and skills in these areas, and it is considered to be one of the most rigorous and comprehensive certification exams in the financial industry. Passing the AFP CTP exam demonstrates a high level of proficiency and expertise in the field of treasury management, and it can help individuals advance their careers and increase their earning potential.
NEW QUESTION # 538
A company sells products to customers on credit, generating accounts receivable. The company uses the accrual accounting method. Once the company collects good funds from its customers, what is the impact on the financial statements of the company?
- A. Cash balance is increased, and income is increased.
- B. Cash balance is increased, and income is not affected.
- C. Cash balance is not affected, and income is increased.
- D. Cash balance is increased, and income is decreased.
Answer: B
NEW QUESTION # 539
Sign Company and Paint Company have a twenty-year business relationship, and they work together when sending and receiving payments. Sign Company also does a large amount of business with Brush Company, a subsidiary of Paint Company. Brush Company's Treasurer recently received a memo from the Treasurer of Paint Company reminding it that when dealing with vendors, extensive information is required when receiving or making ACH payments. What ACH payment format are Sign Company and Paint Company MOST LIKELY to use?
- A. CCD
- B. EBPP
- C. CCD+
- D. CTX
Answer: D
NEW QUESTION # 540
Which of the following correctly describes pooling as practiced in the European cash management environment?
- A. A company need not arrange credit facilities for negative balances.
- B. The accounts of a parent company and its subsidiaries may be aggregated.
- C. It is accomplished through multicurrency accounts in one country.
- D. It can be facilitated between banks.
Answer: B
NEW QUESTION # 541
Which of the following is NOT an operational risk?
- A. Currency risk
- B. Fidelity risk
- C. Workers' compensation risk
- D. Surety risk
Answer: A
NEW QUESTION # 542
A company has made an investment of $30,000, which matures in 180 days and pays $800 in interest. Which of the following is the effective annual yield?
- A. 1.31%
- B. 1.33%
- C. 5.33%
- D. 5.40%
Answer: D
NEW QUESTION # 543
The "agency problem" refers to:
- A. a large and active institutional investor base acting on behalf of individual investors.
- B. stockholders who allow management to take actions that will benefit management.
- C. the internal audit function reporting to the audit committee of the board instead of to management.
- D. management's use of a fiduciary agent for stockholders.
Answer: B
NEW QUESTION # 544
A good credit rating has which of the following effects on debt?
I. Improved marketability
II. Decreased cost of funds
III. Decreased maturity
IV.
Increased dealer fees
- A. I, II, and III
- B. I and II
- C. II and III
- D. I and IV
Answer: B
NEW QUESTION # 545
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?
- A. Performance guarantee
- B. Commercial letter of credit
- C. Documentary collection
- D. Installment credit
Answer: B
NEW QUESTION # 546
A small import/export company, XYZ Company, has recently set up an account with a German firm. The contract between the companies states that XYZ is to be paid as soon as all documents are in order showing that the transaction terms have been met. Which of the following forms of payment drafts would be MOST appropriate for XYZ?
- A. Time
- B. Payable through
- C. Preauthorized
- D. Sight
Answer: D
NEW QUESTION # 547
A retail brokerage firm is MOST like which one of the following types of financial institutions?
- A. Insurance companies
- B. Factoring companies
- C. Investment banks
- D. Captive finance companies
Answer: C
NEW QUESTION # 548
Merchant MNO's sales for the day total $20,000. Fifty percent are credit cards, split between Card Red and Card Blue respectively, at 65% and 35% of the card volume. The average ticket is $50. Fees paid are 2% for Card Red and 2.5% for Card Blue and a fee of $0.05 per transaction. What are the fees that MNO will pay to the issuing banks?
- A. $227.50
- B. $242.50
- C. $217.50
- D. $232.50
Answer: A
NEW QUESTION # 549
The Treasurer at Worldwide Industries is concerned that its retail lockbox provider, Bank A, is not PCI DSS-compliant. Bank A processes 500,000 checks per month for Worldwide Industries. Worldwide Industries uses a third-party provider, Pay Point, for their credit card payments and funds are wired daily to Worldwide's depository account at Bank A.
What should the Treasurer do?
- A. Issue an RFP and search for a lockbox provider that is PCI DSS-compliant.
- B. Take no action as Bank A would not be required to be PCI DSS-compliant.
- C. Notify all customers that pay by credit card that Bank A is not PCI DSS-compliant.
- D. Stop accepting credit card payments since Bank A is not PCI DSS-compliant.
Answer: B
NEW QUESTION # 550
Company XYZ is a high technology company. It is planning on acquiring another company in the high technology sector. Company XYZ does not have enough cash to acquire the company and is planning on financing the acquisition through a bond offering. Which of the following measures is company XYZ MOST LIKELY to use in its analysis of operating profits considering it is a high debt transaction?
- A. Long-term debt to capital
- B. Net profit margin
- C. Return on equity
- D. EBITDA margin
Answer: D
NEW QUESTION # 551
An optimal concentration system minimizes all of the following EXCEPT:
- A. transfer costs.
- B. administrative costs.
- C. disbursement float.
- D. excess balances.
Answer: C
NEW QUESTION # 552
PTC Corporation has determined that the threshold amount for initiating a wire transfer vs. an ACH payment for concentrating funds is $60,225. Wires cost $9.00 and save one day of float. If the opportunity cost is 5%, what is the cost of the ACH payment?
- A. $0.90
- B. $1.00
- C. $0.75
- D. $0.80
Answer: C
NEW QUESTION # 553
A call option for a company has an exercise price of $50. The stock is currently trading at $60. At maturity, what should an investor who paid $3 for the option do?
- A. Exercise the option and gain $10.
- B. Not exercise the option and lose $3.
- C. Exercise the option and gain $7.
- D. Not exercise the option and lose $13.
Answer: C
NEW QUESTION # 554
Which of the following ASC X12 transactions is used to confirm the receipt and compliance of transmitted sets?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: C
NEW QUESTION # 555
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For more info read reference
The Certified Treasury Professional (CTP) is a certification exam offered by the Association for Financial Professionals (AFP). The CTP certification is a globally recognized credential for treasury professionals who want to demonstrate their expertise in the field. Certified Treasury Professional certification exam covers a wide range of topics related to treasury management, including cash and liquidity management, risk management, financial analysis, capital markets, and treasury operations.
Practice CTP Questions With Certification guide Q&A from Training Expert ExamDumpsVCE: https://www.examdumpsvce.com/CTP-valid-exam-dumps.html
Free AFP CTP Test Practice Test Questions Exam Dumps: https://drive.google.com/open?id=1iBnBHFT3somQR1iH_ZMHRz8F5OWrPSOo
