Your Path to Success: How to Pass the AFP CTP Certified Treasury Professional Exam

An investor purchases securities that mature beyond the date when cash is required. The investor intends to sell the investment to meet the cash flow need. This strategy works best when:

The Fed can reduce the money supply by doing which of the following?

1. Increasing reserve requirements

2. Purchasing government securities

3. Increasing legal lending limits

4. Selling government securities

The Treasurer of a publicly-traded U.S. company discovers several large payments which were made from the company’s disbursement account without proper approval. These unauthorized payments represent an exposure to penalties imposed by which regulator?

Because of the growing demand in China for oil, a transportation company decides to assume a long position on oil in hopes of generating short-term investment income. Which of the following describes the firm’s strategy?

A company purchased merchandise that cost C$155,000 from a Canadian supplier and then resold the merchandise for US$135,000. What rate of exchange must the company have obtained to realize a gross profit of US$44,000 on this transaction?

An investment is purchased for $10,000.00 that offers compounding of the first year's interest and it matures at the end of year two. If the value at maturity is $11,664.00, what is the rate of return on the investment?

An organization must maintain adequate liquidity to meet:

James Corp has a 7.98% WACC and an assumed tax rate of 30%. James Corp employed €70,000,000 of capital (long-term debt and equity) in a project that generated an operating profit of €9,500,000, after depreciation expense of €300,000. EVA in this case would be:

As a result of an employee's intentional actions, an electronic payment to a supplier was misdirected to an unauthorized account. This is an example of which of the following types of risk?

An international organization has decided to move its treasury operations to the head office in Paris, France. The company’s goal is to establish the treasury as the primary provider of banking services and all company financing. What would the new proposal be an example of?

Which one of the following is true of capital repatriation for multinational companies?

An accountant is fired after reporting to the SEC that she witnessed the CFO inappropriately reduce expenses ahead of the quarterly earnings announcement. Which of the following would apply?

Which of the following is a service typically provided by an investment custodian?

The Sarbanes-Oxley Act of 2002:

Who has responsibility for final approval of treasury policies that have a significant impact on the organization?

What is the primary weakness of a risk management policy that includes risk control without specifically providing a plan for risk financing?

All of the following are discounted instruments EXCEPT:

Which of the following prohibits price discrimination among customers where cost differences do NOT exist?

Subtracting dividends from net income available to common shareholders is reflected as a change to which of the following balance sheet items?

What activity should the Treasurer be most interested in if core treasury functions were to be compared within the industry or cross-industry for the purpose of identifying “best practices”?