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Free CTP Practice Questions

10 free, exam-style Certified Treasury Professional (CTP) (CTP) practice questions with answers and explanations. No signup required. Work through them below, then take the full free CTP practice test to study every exam domain.

These 10 free CTP questions are organized by exam domain, so you can see how each part of the Certified Treasury Professional (CTP) blueprint is tested. Reveal the answer and explanation under each question.

Domain 3: Manage Internal and External Relationships

Question 1

A company's monthly account analysis statement shows an average collected balance of $10,000,000, a reserve requirement of 10%, and an ECR of 3.0% for a 30-day month. What is the approximate earnings credit?

  1. $24,658
  2. $22,192
  3. $25,000
  4. $30,000
Show answer & explanation

Correct answer: B - $22,192

Question 2

A sales team proposes offering 90-day payment terms to a major customer. Treasury's MOST appropriate advisory role is to:

  1. Approve or reject the proposal based on the company's standard payment terms
  2. Quantify the working capital impact and financing cost and present alternatives
  3. Defer to the sales team since customer relationship decisions are not treasury's role
  4. Recommend the customer pay in advance to eliminate the working capital exposure
Show answer & explanation

Correct answer: B - Quantify the working capital impact and financing cost and present alternatives

Domain 4: Monitor and Control Financial, Regulatory, and Operational Risk

Question 3

A treasury manager receives an urgent email appearing to come from the CEO requesting an immediate wire transfer to a new vendor. What is the FIRST action the treasury manager should take?

  1. Confirm the email domain matches company records and proceed if it checks out
  2. Verify the request through an independent channel such as a phone call to the CEO
  3. Reply to the email requesting additional details and supporting documentation
  4. Escalate the request to the CFO for secondary authorization before executing
Show answer & explanation

Correct answer: B - Verify the request through an independent channel such as a phone call to the CEO

Question 4

What is the PRIMARY difference between a SOC 1 Type I and SOC 1 Type II report?

  1. Type I covers security controls while Type II covers financial controls
  2. Type I evaluates design at a point in time while Type II tests effectiveness over a period
  3. Type I reports are for public use while Type II reports are restricted distribution
  4. Type I is typically more expensive to obtain and maintain than Type II
Show answer & explanation

Correct answer: B - Type I evaluates design at a point in time while Type II tests effectiveness over a period

Question 5

Callback verification procedures for wire transfers should specify:

  1. That the callback be made to the number provided in the wire request itself
  2. That the callback be made to a pre-established number on file, not one from the request
  3. That callbacks are only necessary for international wires exceeding a set threshold
  4. That any authorized member of the treasury team can complete the callback verification
Show answer & explanation

Correct answer: B - That the callback be made to a pre-established number on file, not one from the request

Question 6

Under UCC Article 4A, the risk of loss for an unauthorized but properly executed wire transfer generally falls on:

  1. The receiving bank that accepted and processed the fraudulent payment order
  2. The originator if the bank followed a commercially reasonable security procedure
  3. The Federal Reserve as the operator of the underlying payment system
  4. The beneficiary who ultimately received and retained the transferred funds
Show answer & explanation

Correct answer: B - The originator if the bank followed a commercially reasonable security procedure

Question 7

Recovery Point Objective (RPO) defines:

  1. The maximum tolerable duration of a service outage before business impact becomes critical
  2. The maximum tolerable amount of data loss measured in time before a recovery point
  3. The prioritized sequence in which systems and applications must be restored after disruption
  4. The minimum staffing level required to maintain critical business operations during recovery
Show answer & explanation

Correct answer: B - The maximum tolerable amount of data loss measured in time before a recovery point

Question 8

Which of the following employee actions would be the strongest indicator of potential internal fraud?

  1. Taking regular vacations and consistently using all allocated leave time
  2. Consistently refusing to take vacation and resisting duty rotation or cross-training
  3. Requesting a salary increase at every annual review cycle and compensation discussion
  4. Working from home on a regular basis with documented manager approval each time
Show answer & explanation

Correct answer: B - Consistently refusing to take vacation and resisting duty rotation or cross-training

Domain 5: Assess the Impact of Technology on the Treasury Function

Question 9

ISO 20022 is replacing legacy SWIFT MT message formats PRIMARILY because:

  1. ISO 20022 consolidates multiple legacy message types into a single standardized format
  2. ISO 20022 uses a richer XML-based data structure that enables more complete and structured information in payment messages
  3. ISO 20022 enables real-time gross settlement that legacy MT formats do not support
  4. ISO 20022 reduces the need for correspondent banking in certain cross-border payments
Show answer & explanation

Correct answer: B - ISO 20022 uses a richer XML-based data structure that enables more complete and structured information in payment messages

Question 10

Central Bank Digital Currencies (CBDCs) differ from cryptocurrencies in that CBDCs:

  1. Are decentralized and unregulated, similar to Bitcoin and other cryptocurrencies
  2. Are issued and backed by a central bank as a digital form of sovereign currency
  3. Are designed primarily for wholesale interbank settlement rather than retail use
  4. Are exclusively used for international trade settlements between central banks
Show answer & explanation

Correct answer: B - Are issued and backed by a central bank as a digital form of sovereign currency

The rest of the CTP blueprint

The CTP exam also covers these domains. Drill them in the full free practice test:

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