Certified Treasury Professional Practice Exam 2026 2028 Complete

CERTIFIED TREASURY

PROFESSIONAL PRACTICE

EXAM 2026 2028

COMPLETE

Question 1: Five subsidiaries make many o�setting payments to one another each month. Which process can reduce the number and value of external intercompany settlements?

Choices:

1) Extending all external supplier terms 2) Increasing every subsidiary's minimum cash balance 3) Paying each invoice separately in gross form 4) Multilateral netting

Correct Answer: Multilateral netting

Explanation: Multilateral netting o�sets intercompany receivables and payables so each participant settles a smaller net amount rather than numerous gross payments.Page 1

Question 2: What operational feature makes real-time payment networks

materially di�erent from many traditional batch payment processes?

Choices:

1) Every payment requires a physical signature card 2) Payments can clear and settle rapidly with extended availability 3) The sender always has several days to reverse �nal settlement 4) Settlement occurs only once each month Correct Answer: Payments can clear and settle rapidly with extended availability Explanation: Real-time networks are built for rapid processing and settlement, often with broad operating hours. Treasury must adapt funding, fraud controls, and monitoring to faster �nality.

Question 3: Which period begins when inventory or inputs are acquired and ends

when cash is collected from customers?

Choices:

1) Debt service cycle 2) Operating cycle 3) Settlement �nality period 4) Dividend cycle

Correct Answer: Operating cycle

Explanation: The operating cycle traces the business process from acquiring inputs through production or sale to collection of customer cash.Page 2

Question 4: What is a core function of an in-house bank?

Choices:

1) Auditing the external bank's �nancial statements 2) Issuing sovereign currency 3) Centralizing selected treasury services for group entities 4) Providing retail deposit insurance to employees

Correct Answer: Centralizing selected treasury services for group entities

Explanation: An in-house bank centralizes services such as intercompany funding, payments, collections, FX, or netting so subsidiaries interact with a central treasury function.Question 5: Why should treasury set counterparty exposure limits even for highly rated banks?

Choices:

1) Exposure limits guarantee a bank will never fail 2) Ratings can change and concentration in one institution can create outsized loss or liquidity risk 3) Limits are required only for equity investments 4) Highly rated banks cannot accept deposits Correct Answer: Ratings can change and concentration in one institution can create outsized loss or liquidity risk Explanation: Counterparty limits reduce concentration and recognize that credit quality can deteriorate. They are one element of ongoing exposure and liquidity risk management.Page 3