CTP Practice Questions (2026) — Free Sample Questions with Answers

Answer: D

A fixed weekly amount set from average deposits: A fixed weekly transfer leaves cash idle between transfers and over- or under-draws when deposits vary.

Anticipated deposits transferred before they are made: Anticipation transfers speed up concentration but risk overdrafts when actual deposits fall short.

The full ledger balance of each account every day: The ledger balance includes uncollected deposits, so moving it all can create uncollected-funds overdrafts.

Actual reported deposits, timed to when the funds become available: Correct. Transferring the reported deposit amount so it settles when the funds become collected minimizes idle balances without drawing on uncollected funds.

Deposit-reporting-based concentration, matched to availability, balances speed of concentration against overdraft risk.

Answer: B

banks deal with documents, not with the goods or the performance: True: under UCP 600 banks deal with documents and not with the goods, services or performance to which they relate.

the issuing bank may refuse the presentation because of the applicant's complaint: Correct. This is the false statement: the credit is independent of the sales contract, so a complying presentation must be honored; the buyer's remedy for damaged goods lies against the seller.

the issuing bank has up to five banking days to examine the documents: True: UCP 600 gives a maximum of five banking days following presentation to determine whether it complies.

had the documents been discrepant, the bank could seek a waiver from the applicant: True: when documents do not comply, the issuing bank may approach the applicant for a waiver of the discrepancies.

An L/C is independent of the underlying sale: a complying presentation must be honored even if the goods are disputed, so the buyer's protection lies in the documents the credit requires.

Answer: D

premium, implying euro interest rates exceed U.S. interest rates: Right premium, wrong rate direction: the higher-rate currency trades at a forward discount, not a premium.

discount, implying euro interest rates exceed U.S. interest rates: Positive points added to a USD-per-EUR quote mean a premium on the euro, not a discount.

discount, implying U.S. interest rates exceed euro interest rates: This mixes a discount reading of positive points with the correct rate relationship; the euro is at a premium.

premium, implying U.S. interest rates exceed euro interest rates: Correct. Positive points raise the forward USD-per-EUR rate (1.0845), so the euro is at a premium; under IRP the currency with the lower interest rate trades at a forward premium.

Under IRP the forward premium or discount offsets the interest differential: the lower-rate currency trades at a forward premium.

Answer: A

Compare forecast to actual receipts by customer and timing: Correct. A persistent one-direction error signals bias; variance analysis by component finds its cause before the model is changed.

Reduce all receipt projections by 10% for the next quarter: A blanket haircut hides the cause and will be wrong if the bias comes from one customer group or a timing shift.

Replace the receipts and disbursements method with regression: Changing method before diagnosing the error may not fix it, and an R&D model is suited to a 13-week horizon.

Rebuild the receipts forecast from the current aging report: Refreshing the inputs may help, but without variance analysis the cause of a persistent one-way bias (a slow-paying customer group or a timing shift) stays unknown.

Forecast control: measure variances, analyze them by component to find bias or timing errors, then adjust the model.

Answer: A

Review bank reports to set the opening collected position: Correct. The investment or borrowing decision starts from the verified opening collected balance and the day's known debits and credits from bank reporting.

Obtain dealer quotes for overnight investment options: Getting quotes is a later step: the amount to invest is not known until the position is set.

Initiate concentration transfers from the depository accounts: Transfers are sized from the deposit and balance reports, so they follow the review of bank data.

Update the monthly cash forecast with the latest sales data: The longer-range forecast supports positioning but is not the first step of the daily routine.

Daily cash positioning: gather bank balance and activity data → compute the collected position against target → move funds → invest or borrow the surplus or deficit.

Answer: C

An uncommitted line of credit with the lead dealer bank: An uncommitted line can be declined exactly when market access is lost, so it does not give reliable backup liquidity.

A direct-pay standby letter of credit for each issue: An LOC is credit enhancement used by weaker issuers to borrow on the bank's rating; it is costlier and not the standard expectation for an A1/P1 issuer.

A committed revolver sized to cover CP outstanding: Correct. Rating agencies expect backup liquidity, normally committed bank lines covering CP outstanding, so maturing paper can be repaid if the issuer cannot roll it.

A bankers' acceptance facility for trade borrowing: BAs finance specific trade transactions; they are not a general liquidity backstop for maturing CP.

CP programs are backed by committed (not uncommitted) bank lines because the risk being covered is rollover risk in a stressed market.

Answer: A

SOFR cost stays between 3.00% and 5.50%; savings below 3.00% are lost: Correct: a zero-cost collar caps the rate at 5.50% and, through the sold floor, sets a minimum of 3.00%.

The company locks in a single fixed rate for the life of the debt: A single fixed rate comes from a pay-fixed swap, not a collar.

The company pays an upfront premium in exchange for protection above 5.50%: That describes buying a cap alone; here the floor premium received pays for the cap.

The company benefits fully if SOFR falls below 3.00%: Selling the floor means the company pays the difference when SOFR is below 3.00%, so it does not benefit below that level.

A borrower's collar = long cap + short floor: protection above the cap rate, but savings are given up below the floor rate.

Answer: D

Rationalize the acquired bank relationships into Stonebridge's existing banks: Bank rationalization is a worthwhile integration step, but it takes months and comes after control is secured.

Connect the acquired accounts to Stonebridge's treasury management system: TMS integration improves visibility over time but depends on first identifying the accounts and controlling access.

Renegotiate the acquired company's bank fees using Stonebridge's larger transaction volumes: Fee savings matter but are a later optimization, not a Day 1 control priority.

Identify all acquired accounts and replace the seller's signers and users: Correct: control comes first; treasury must know every account and make sure only authorized people can move money from the moment of closing.

In M&A integration, treasury first secures visibility and control (accounts, signers, system access), then rationalizes banks and systems.

Answer: C

1. CAPM: Ke = Rf + β × (Rm − Rf).
2. Market risk premium = 10.00% − 4.00% = 6.00%.
3. Ke = 4.00% + 1.20 × 6.00% = 4.00% + 7.20% = 11.20%.

7.20%: Beta × market risk premium (1.20 × 6.00%) omits the risk-free rate.

10.00%: This is the expected market return; it ignores the stock's beta.

11.20%: Correct: Ke = 4.00% + 1.20 × (10.00% − 4.00%) = 11.20%.

12.00%: Beta × expected market return (1.20 × 10.00%) uses the market return instead of the market risk premium and leaves out the risk-free rate.

CAPM cost of equity = risk-free rate + beta × (expected market return − risk-free rate).

Answer: C

A Rule 144A high-yield bond offering: Rule 144A avoids registration, but these deals are broadly marketed to many QIBs, usually carry ratings, and fund in full at closing.

A public bond issue off a shelf registration: A shelf issue requires SEC registration and public ratings, which the CFO wants to avoid.

A private placement of senior notes with insurers: Correct: US private placements under Section 4(a)(2) are negotiated directly with a few institutional investors, need no public rating, and can offer delayed-draw funding.

A delayed-draw term loan from its relationship banks: Banks offer delayed-draw term loans, but they are typically floating-rate and five to seven years; they do not provide 12-year fixed-rate funding.

Private placements suit mid-size or unrated issuers that want negotiated terms, few investors and flexible funding schedules.

Answer: B

1. Investable balance = average collected balance × (1 − reserve) = $2,100,000 × (1 − 0) = $2,100,000.
2. Earnings credit = $2,100,000 × 2.40% × 30/360 = $4,200.
3. Net charge = total service charges − earnings credit = $6,180 − $4,200 = $1,980.

$1,280: This applies the ECR to the average ledger balance ($4,900 credit); float is not investable, so the credit is based on the collected balance.

$1,980: Correct: earnings credit = $2,100,000 × 2.40% × 30/360 = $4,200; $6,180 − $4,200 = $1,980.

$2,038: This uses a 365-day year ($4,142 credit); the statement says the bank uses a 360-day basis.

$2,680: This subtracts float from the collected balance a second time ($1,750,000 base, $3,500 credit).

Earnings credit = average collected balance × (1 − stated reserve) × ECR × days/basis; fees not covered by the credit are charged to the account.

Answer: A

it is filed with Whitcombe's federal corporate income tax return: Correct. This is the false statement: the FBAR (FinCEN Form 114) is a Bank Secrecy Act report filed electronically with FinCEN, separately from the tax return.

it is required because the aggregate maximum value exceeded $10,000: True: an FBAR is required when the aggregate maximum value of foreign financial accounts exceeds $10,000 at any time during the year.

it must also cover accounts where Whitcombe has only signature authority: True: the requirement covers accounts in which the filer has a financial interest or over which it has signature or other authority.

it is due April 15, with an automatic extension to October 15: True: the FBAR is due April 15 following the calendar year, with an automatic extension to October 15.

FBAR: a BSA report (FinCEN Form 114) filed electronically with FinCEN, not with the tax return, when foreign accounts exceed $10,000 in aggregate; due April 15 with an automatic extension to October 15.

Answer: D

Execute it because 70% is within the 50%–80% hedge band: The hedge ratio is compliant, but the instrument is not: the sold call is a written option.

Execute it because a zero-cost collar requires no premium: Zero upfront premium does not change the instrument type; the sold call still creates the prohibited exposure.

Execute it and disclose the sold call in the monthly report: Disclosure after the trade does not make a prohibited instrument compliant.

Decline the collar unless the board first amends the policy to allow it: Correct. A collar includes a written call, which the policy prohibits; the hedge ratio and zero premium do not cure the breach without board approval.

Check every leg of a structured hedge against the policy's permitted instruments; a policy exception needs approval before the trade.

Answer: B

Call the phone number given in the e-mail's signature: The fraudster controls the e-mail, including any phone number in it, so the call can reach the fraudster.

Call the supplier at a phone number already on file to confirm the change: Correct. Out-of-band verification using independently held contact data defeats business e-mail compromise, because the fraudster controls only the e-mail channel.

Update the details but require dual approval of the next payment: Dual approval stops insiders acting alone; both approvers can still release funds to the fraudulent account.

Ask the supplier to send the new details on letterhead as a PDF: Letterhead documents are easy to forge and still arrive through the compromised channel.

Any change to payee bank details must be verified out of band, through contact data already on file, before it is used.

Answer: A

Deny the prompts and report the likely compromise to IT: Correct: unrequested prompts mean an attacker already has her password; denying them and reporting at once lets IT and the bank reset credentials and watch for fraud.

Approve one prompt to stop them, then reset her password: Approving a prompt gives the attacker a live session, which is exactly what push-bombing aims for.

Ignore them, since dual control still guards wire release: Dual control helps, but an attacker in the portal can still change templates, view data or target the second approver; the compromise must be reported.

Switch to SMS one-time codes until the prompts stop: SMS codes are a weaker factor, and changing the method leaves the stolen password in the attacker's hands.

MFA fatigue attacks flood a user with push prompts after stealing a password; never approve an unrequested prompt, and report it so credentials are reset.

Answer: A

pain.002: Correct: pain.002 is the payment status report the bank returns to accept or reject the file and individual payments.

pain.001: pain.001 is the customer credit transfer initiation the TMS already sent; it carries no bank status.

camt.053: camt.053 is the end-of-day statement; it arrives too late and shows booked entries, not acceptance status.

camt.054: camt.054 notifies debits or credits once entries are booked; it does not report acceptance or rejection of each instruction.

ISO 20022 corporate messages: pain.001 initiates, pain.002 reports status, camt.052 gives intraday, camt.053 end-of-day and camt.054 entry notifications.