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CTP Certified Treasury Professional

  • AFP
  • 4 free sample questions

About this exam

CTP is the AFP exam Certified Treasury Professional. Paid practice material for this exam is not available yet, but you can try its free sample questions.

Exam code
CTP
Vendor
AFP
Practice questions
Not available yet
Free sample questions
4
Question bank last updated
Not available yet

Try 2 sample questions

Taken from the free sample set for CTP.

Question 1

Which of the following instruments simplifies the paperwork connected with loans that have multiple advance features

  1. Option A:
    Master note
  2. Option B:
     Banker's acceptance
  3. Option C:
    Indenture agreement
  4. Option D:
    Note purchase agreement
Show answer and explanation

Correct answer: A

A master note is a single loan agreement that covers multiple loan advances under one set of terms and conditions. Instead of preparing and signing a new promissory note for each advance, the borrower and lender use the master note to simplify documentation and reduce paperwork for revolving or multiple-disbursement loans. In contrast, a banker's acceptance is a trade finance instrument, an indenture agreement governs bond issues, and a note purchase agreement is used in private debt placements rather than for managing multiple loan advances. Therefore, A. Master note is the correct answer.

Question 2

An arrangement in which a borrower makes periodic payments to a separate custodial account that is used to repay debt is known as a:

  1. Option A:
    sinking fund
  2. Option B:
    balloon payment
  3. Option C:
    mortgage
  4. Option D:
    zero-coupon bond
Show answer and explanation

Correct answer: A

A sinking fund is an arrangement in which a borrower makes regular periodic payments into a separate custodial or reserve account. The accumulated funds are then used to repay the debt, often at maturity or to retire portions of the debt over time. This reduces the lender's risk by ensuring money is set aside for repayment. In contrast, a balloon payment is a large final payment at the end of a loan, a mortgage is a loan secured by real estate, and a zero-coupon bond is issued at a discount and pays no periodic interest until maturity. Therefore, A. Sinking fund is the correct answer.
See all 4 free sample questions