Pass AFP CTP Actual Free Exam Q&As Updated Dump Sep 16, 2025
Latest CTP Actual Free Exam Updated 1079 Questions
NEW QUESTION # 532
The Treasurer at ABC Company currently uses an in-house company-processing lockbox center. The Treasurer has asked for an analysis to determine the major advantage of using a traditional check/mail-based lockbox system. ABC receives 287,000 payments per month and hired seven additional staff members to process the payments in-house. Additionally, $389,000 was invested in the equipment used to process the payments and NSF checks have decreased 7% since using the in-house center. The equipment's current market value is equal to its book value. What major advantage should the analysis indicate?
- A. NSF checks will continue to decrease.
- B. The equipment can be sold at no loss.
- C. Availability float will be reduced.
- D. Net income will improve.
Answer: C
NEW QUESTION # 533
Company A anticipates the following cash inflows and outflows for the next three months:
If the company's treasurer is preparing a cash-flow projection for Month 2, and he is focusing purely on items that can be projected with a fair degree of certainty, what will the net projection be?
- A. $131,000
- B. ($104,000)
- C. ($119,000)
- D. $146,000
Answer: A
NEW QUESTION # 534
The custodian of a company's retirement plan provides which of the following services?
- A. Safekeeping services
- B. Actuarial services
- C. Legal services
- D. Insurance services
Answer: D
NEW QUESTION # 535
Which of the following is LEAST important when a cash manager determines a company's short-term cash position?
- A. Pro forma financial statements
- B. Receipts and disbursements forecasts
- C. Payments of dividends
- D. Disbursement clearing patterns
Answer: A
NEW QUESTION # 536
The first step in the financial institution and financial services provider (FSP) selection process should be:
- A. selecting a pool of available candidates.
- B. establishing a grading mechanism.
- C. identifying the critical product or service specifications.
- D. evaluating the cost of switching providers.
Answer: C
NEW QUESTION # 537
ABC Company, a publicly held U.S. multinational, owns several manufacturing plants in Latin America as well as several ships to transport its products globally. 60% of its sales are from its euro-based subsidiaries. The company uses various derivative instruments to mitigate exposure to fluctuations in fuel prices and FX rates. The hedging deals are long-term and placed with many counterparties. ABC Company is also a net borrower and has a syndicated credit facility in place. Which of the following actions to mitigate counterparty risk would MOST benefit the company?
- A. Implement or adjust single counterparty balance limits.
- B. Add to the number of counterparties to increase diversification.
- C. Adopt a third-party custodian for investments.
- D. Eliminate specific AAA rated counterparties.
Answer: A
NEW QUESTION # 538
During a company's cash flow analysis review it discovers that for every 10 new customers it gains, there is an increase of 2% in its float costs associated with the payment methods it offers. If the company pursues faster collection methods for payments, resulting in greater availability of surplus cash with a correlating decrease in the need to issue commercial paper, what risk will the company mitigate?
- A. Liquidity
- B. Disbursement
- C. Float
- D. Settlement
Answer: A
NEW QUESTION # 539
Which of the following will exempt commercial paper from SEC registration?
I. A maturity of fewer than 270 days
II. A rating grade of A-1 or P-1
III. Distribution through a licensed dealer
IV. Backing by a U.S. bank letter of credit
- A. I and II only
- B. II, III, and IV only
- C. IV only
- D. I only
Answer: D
NEW QUESTION # 540
Which of the following payment instruments can provide predictable collection float?
I.Wire transfer II.Check III.ACH IV.Cash
- A. IV only
- B. III only
- C. I, III, and IV only
- D. I, II, and IV only
Answer: C
NEW QUESTION # 541
Company A offers a network to business clients wishing to exchange invoice and remittance information amongst themselves. During the course of business, Company B on the network complains that it is not receiving payments from its clients on the network, who, in turn, claim they are not receiving invoices from the company. What information security practice did Company A NOT ensure was in place to prevent realizing this technology risk?
- A. Digital signatures
- B. Integrity
- C. Non-repudiation
- D. Authentication
Answer: C
NEW QUESTION # 542
A company with $50 million in foreign assets decides to increase its foreign debt by $40 million for a debt ratio of 80%. This action will reduce which exposure?
- A. Transaction
- B. Translation
- C. Hedged
- D. Economic
Answer: B
NEW QUESTION # 543
To acquire an asset without putting debt on the balance sheet, a company should consider which of the following arrangements?
- A. Financial lease
- B. Operating lease
- C. Capital lease
- D. Triple-net lease
Answer: B
NEW QUESTION # 544
Company XYZ is aggressively expanding globally. It is evaluating four markets: Latin America, Europe, Asia and Middle East.
Latin AmericA. Risk adjusted discount ratE. 15%, Payback period=7 years, IRR=15% EuropE. Risk adjusted discount ratE. 8%, NPV=$20M Middle East: Risk adjusted discount ratE. 11%, IRR=12%, NPV=$5M AsiA. WACC. 9%, Payback=2 yrs, IRR=8% Based on the information, which two markets will company XYZ MOST LIKELY pursue?
- A. Asia and Latin America
- B. Europe and Middle East
- C. Middle East and Latin America
- D. Europe and Asia
Answer: B
NEW QUESTION # 545
Underfunded pension obligations can be reduced by:
- A. higher premiums to the Pension Benefit Guaranty Corporation.
- B. an upward shift in the yield curve.
- C. immediate vesting in the defined contribution plan.
- D. higher benefit payments to retirees.
Answer: B
NEW QUESTION # 546
A company in a distressed financial condition may choose to use which of the following services to entice suppliers to continue to sell to it on open terms?
- A. Corporate trust
- B. Documentary collection
- C. Standby letter of credit
- D. Bankers' acceptance
Answer: C
NEW QUESTION # 547
Which of the following is NOT one of the three goals of a disbursement system?
- A. Bank relationship management
- B. Fraud prevention
- C. Information access
- D. Centralize payments
Answer: A
NEW QUESTION # 548
Which of the following will directly increase a company's cost in a fee-only bank relationship?
- A. A decrease in ledger balances
- B. A decrease in the reserve requirement
- C. An increase in the ECR
- D. An increase in transaction activity
Answer: D
NEW QUESTION # 549
On the basis of the data above,
what is the forecast for Thursday's cash receipts, under the exponential smoothing method?
- A. $120
- B. $130
- C. $110
- D. $122
Answer: A
NEW QUESTION # 550
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 swap costs. What objective in the company investment policy is guiding the portfolio manager's decision?
- A. Preservation of principal
- B. Performance measurement
- C. Risk analysis
- D. Risk/return trade off
Answer: D
NEW QUESTION # 551
A company has a $300,000 credit line of which $200,000 was the average amount outstanding for the year.
The terms of the loan include a 1/2 of 1% commitment fee on the unused portion, an interest rate of 10%, and a compensating balance requirement of 2% of the total credit line. The company's compensating balances are funded from credit-line borrowings.
If the company negotiates to eliminate the compensating balance requirement and the average borrowings remain at $200,000, the annual interest rate would be:
- A. 10.00%.
- B. 10.31%.
- C. 10.25%.
- D. 10.57%.
Answer: C
NEW QUESTION # 552
A company invests in a bond and then later agrees to sell the bond to a bank with the understanding that the company will buy the bond back at a later time. This is known as:
- A. syndication.
- B. reverse repurchase.
- C. securitization.
- D. factoring.
Answer: B
NEW QUESTION # 553
The time between receipt of a mailed payment and the deposit of the payment in the payee's account is known as:
- A. collection float.
- B. processing float.
- C. availability float.
- D. mail float.
Answer: B
NEW QUESTION # 554
Company XYZ requested lockbox details from its bank. The company currently receives checks that have both machine-readable remittances and attached remittance information. What would cause Company A to select a retail lockbox versus a wholesale lockbox?
- A. If it has a high volume of B2B payment
- B. If it has a low volume of B2B payments
- C. If it has a high volume of C2B payments
- D. If it has a low volume of C2B payments
Answer: C
NEW QUESTION # 555
An electronics manufacturer is attempting to protect itself from financial losses due to projected high warranty claims costs for one of its technically complex products. What kind of assessment should the company perform to determine the appropriate external insurance coverage that would protect it from the claims?
- A. Exposure
- B. Avoidance
- C. Quantitative
- D. Insurability
Answer: C
NEW QUESTION # 556
The MOST important tool the Federal Reserve Board has for influencing the amount of reserves in the banking system is:
- A. open market operations by the New York Federal Reserve.
- B. term limits for the Federal Reserve Governors.
- C. meetings of the Reserve Board of Governors.
- D. accepting tax payments on behalf of the IRS.
Answer: A
NEW QUESTION # 557
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