Certified Treasury Professional Exam Practice Test

Certified Treasury Professional (CTP) Exam evaluates a candidate’s knowledge and ability to handle critical functions related to corporate liquidity, capital, and risk management. The CTP credential is recognized around the world as the leading credential in corporate treasury, with holders earning an average of 16% more than non-holders.

This page will cover the CTP examination, what information the exam covers, the number and type of questions you can expect, the score you need to pass, and everything you need to register for the assessment.

Eligibility

Candidates wanting to take the CTP will have to meet the educational or work experience requirements before they can do so.

All candidates must have one of the following:

  • Two years of experience working full-time in an area of professional finance
  • A graduate degree in finance
  • Four years of full-time college-level financial teaching experience

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Exam Outline Review

The Certified Treasury Professional Exam contains 170 questions, all of which are multiple-choice, and the time limit is 3.5 hours.

The exam contains 5 domains, which are outlined below.

Domain 1 (25%)

This domain is about maintaining corporate liquidity required to meet current and future obligations in a timely and cost-effective manner.

Specifically, Domain 1 covers the following topics:

  • Ability to manage optimal cash positioning using short-term investing and borrowing procedures
  • Ability to forecast and manage cash receipts and disbursements
  • Ability to recognize and leverage cash consideration and pooling structures
  • Manage foreign exchange (FX) exposure
  • Ability to manage trade financing, including letters of credit
  • Ability to manage intercompany financing (may include loans, repatriation, and in-house banking procedures)
  • Review cash balances and reconcile transaction activity to ensure accuracy
  • Optimize treasury operations (including considerations for roles/responsibilities and outsourcing options)
  • Calculate, analyze, and evaluate financial ratios to optimize financial decision-making

Domain 2 (18%)

This domain is about managing capital structure, managing costs of long-term capital, and quantitatively evaluating long-term capital resource investments.

Specifically, Domain 2 covers the following topics:

  • Negotiate and manage syndicated agreements
  • Manage investment portfolio
  • Issue debt and equity
  • Manage revolving debt agreements
  • Assess the impact of mergers, acquisitions, and divestitures
  • Evaluate current market conditions (including credit availability, spreads, interest rates, terms, risk) as they relate to long‐term borrowing strategies

Domain 3 (20%)

This domain is about managing internal and external relationships.

Specifically, Domain 3 covers the following topics:

  • Build, maintain, and review relationships with external financial service providers
  • Evaluate and implement treasury products and services (including banking products, treasury workstations)
  • Administer bank accounts (including bank fee analysis) and maintain documentation
  • Identify, negotiate, and select relationships and operational agreements with external service providers (including financial, technological, and investment/retirement advisors) to ensure best practices and competitive pricing
  • Serve as an internal trusted advisor and consultant (including Project Finance)
  • Manage merchant services programs (including fees, risk, controls, card security compliance, retention requirements)
  • Build and maintain relationships with internal stakeholders (including accounting, IT, legal, and tax departments)

Domain 4 (25%)

This domain is about monitoring and controlling corporate exposure to financial, regulatory, and operational risk (including emerging and reputational risk).

Specifically, Domain 4 covers the following topics:

  • Comply with treasury policies and procedures (such as investment, FX, risk management, hedging, credit approval)
  • Draft treasury policies and procedures for approval including FX, risk management, hedging, credit approval
  • Detect and mitigate fraud (such as payments, bank transactions, internal, and external)
  • Benchmark performance against external sources to ensure best practices (including banking fees comparative analysis)
  • Evaluate and manage counterparty risk (including risk related to supply chain, banks, brokers, dealers)
  • Develop, maintain, and test business continuity plans (including bank balance reporting process, funds transfer capabilities)
  • Hedge FX, interest rate, and commodities exposure
  • Ensure regulatory compliance, and report internally and externally on compliance

Domain 5 (12%)

This domain is about assessing impact of technologies on the treasury function.

Specifically, Domain 5 covers the following topics:

  • Leverage technology systems
  • Identify security issues and concerns associated with new and existing technology
  • Identify cyber‐related risks
  • Monitor information security risks and cyber‐related risks (including e‐mail scams, phishing scams)

exam outline for the certified treasury professional exam, which contains 170 questions and has a time limit of 3.5 hours

Registration

Registration for the exam is done online or over the phone. To successfully register, you will have to pay a registration fee of $186.00.

Phone:To make your registration over the phone, call Pearson VUE’s registration center at 866-837-8287.
Online:For online registration, visit the Pearson VUE website.

 

Receiving Authorization

After you have registered online or over the phone, you will wait to receive authorization to take the test via the mail. Your authorization should arrive within a month of your registration. If you do not receive the authorization in the mail in a month, call 301-907-2862 or reach out to certification@afponline.org.

Candidates who registered to take the test at a later date will NOT receive their authorization to test in the mail until after the current test date has passed.

When you receive your authorization letter, take the time to ensure the name on the paper is an exact match to your method of identification. If you see any incorrect information, contact AFP as soon as possible to have the error corrected. On test day, you will not be allowed to test if the name on your ID and the name on the authorization are not exact matches.

Choosing a Testing Center

Once you receive your authorization, you can register to take the test at any of the 5,000 centers. You want to do this as soon as you receive your letter. The available seats at these centers fill up quickly, so you do not want to miss your opportunity by waiting to declare where you want to test!

Cancelling Your Registration

If you contact the AFP by sending them the appropriate required form to cancel by the deadline, you will receive a portion of your fee, but not all of your registration fees. The deadlines for cancellation requests are always 14 days before the registered testing day.

Testing Deadlines

The CTP exam has two 2-month testing windows each year: June-July and December-January.

Here are the deadlines for applying to take the exam in the December 2022-January 2023 testing window:

Deadlines for Testing Window 2022B:
December 1, 2022 – January 31, 2023
Early ApplicationSeptember 28, 2022
Final ApplicationNovember 2, 2022
Re-registrationNovember 2, 2022
CancellationNovember 17, 2022
Refund RequestNovember 17, 2022
Deferral RequestJanuary 31, 2023

 
Any applications that are received after the designated deadline will automatically be deferred until the next available testing date.

Exam Fees

All test fees are in addition to the initial registration fee.

If you are a member of the Association for Financial Professionals (AFP), the cost of the test will be $410.00. The cost for non-AFP members is $991.00.

Test Day

To be admitted to take the exam, you must provide a valid photo ID. Examples of acceptable identification include passports, state-issued driver’s licenses, state-issued identifications, and employee cards that have your name and photo.

Items that are NOT Allowed in the Testing Room

  • Cell phone
  • Handheld calculator (online calculators will be provided)
  • Books or reference materials
  • Scratch paper (you will be given a whiteboard and pen to do your calculations on)

Late Arrival

If you arrive at the testing center more than 30 minutes after the test has begun, you will be considered a “no-show.” No-shows are penalized with an $85.00 fee.

CTP Scores

To pass the CTP exam, candidates must earn a score of 300 or above. It may be comforting for you to know that at least 50% of the candidates who take the exam receive a passing grade!

If take the computer-based test, you will receive an unofficial score report immediately after you complete the test. Regardless of the testing method, official score reports are sent out about 3 weeks after you complete the test.

Retaking the Exam

There are no limitations to how many times you can take the examination overall, but you can only take the exam once during each exam window.

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How to Study for the CTP Exam

How to Study Effectively

Your success on CTP test day depends not only on how many hours you put into preparing but also on whether you prepared the right way. It’s good to check along the way to see whether your studying is paying off. One of the most effective ways to do this is by taking CTP practice tests to evaluate your progress. Practice tests are useful because they show exactly where you need to improve. Every time you take a free CTP exam practice test, pay special attention to these three groups of questions:

  • The questions you got wrong
  • The ones you had to guess on, even if you guessed right
  • The ones you found difficult or slow to work through

This will show you exactly what your weak areas are and where you need to devote more study time. Ask yourself why each of these questions gave you trouble. Was it because you didn’t understand the material? Was it because you didn’t remember the vocabulary? Do you need more repetitions on this type of question to build speed and confidence? Dig into those questions and figure out how you can strengthen your weak areas as you go back to review the material.

Answer Explanations

Additionally, many Certified Treasury Professional practice tests have a section explaining the answer choices. It can be tempting to read the explanation and think that you now have a good understanding of the concept. However, an explanation likely only covers part of the question’s broader context. Even if the explanation makes sense, go back and investigate every concept related to the question until you’re positive you have a thorough understanding.

Comprehend Each Topic

As you go along, keep in mind that the CTP practice test is just that: practice. Memorizing these questions and answers will not be very helpful on the actual test because it is unlikely to have any of the same exact questions. If you only know the right answers to the sample questions, you won’t be prepared for the real thing. Study the concepts until you understand them fully, and then you’ll be able to answer any question that shows up on the test.

Strategy for CTP Practice

When you’re ready to start taking practice tests, follow this strategy:

  • Remove Limitations. Take the first test with no time constraints and with your notes and CTP study guide handy. Take your time and focus on applying the strategies you’ve learned.
  • Time Yourself. Take the second practice test “open book” as well, but set a timer and practice pacing yourself to finish in time.
  • Simulate Test Day. Take any other practice tests as if it were test day. Set a timer and put away your study materials. Sit at a table or desk in a quiet room, imagine yourself at the testing center, and answer questions as quickly and accurately as possible.
  • Keep Practicing. Keep taking practice tests on a regular basis until you run out of practice tests or it’s time for the actual test. Your mind will be ready for the schedule and stress of test day, and you’ll be able to focus on recalling the material you’ve learned.

FAQs

How hard is the CTP exam?

The CTP exam is generally known to be a moderately difficult exam, with an average pass rate of 50%.

How many questions are on the CTP exam?

There are 170 questions on the CTP exam.

How long is the CTP exam?

The CTP exam has a time limit of 3.5 hours.

What jobs can I get with a CTP credential?

Not all of the jobs listed below actually require a person to have passed the CTP exam, but if you plan to work in any of the positions listed here and have taken and passed this test will increase your chances of being hired.

  • Treasury analyst
  • Treasury managers
  • Senior treasury analyst
  • Treasurer
  • Treasury director
  • Senior treasury manager
  • Assistant treasurer

By Peter Rench

Peter Rench joined Mometrix in 2009 and serves as Vice President of Product Development, responsible for overseeing all new product development and quality improvements. Mr. Rench, a National Merit Scholar, graduated magna cum laude with a Bachelor of Science in Mechanical Engineering and a minor in mathematics from Texas A&M University.

 

by Mometrix Test Preparation | This Page Last Updated: September 2, 2022