CTP Exam Practice Questions with

CTP Exam Practice Questions with Complete Solutions Over the past 3 years XYZ Company has expanded into multiple countries and significantly grown its banking relationships. The company now incurs significant expenses related to payment transaction costs and maintaining multiple bank connections. What shoudl the company use to cobat these rising costs.

• SWIFT network
• ACH Network
• CHIPS network
• TARGET 2 - Correct Answers ✅A

An Instrument that gives the right to buy a stated number of shares of common stock at a specified price is known as

• An equity warrant
• a Put Option
• A zero Coupon Bond
• A subordinate debenture - Correct Answers ✅A

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

• sinking fund
• Balloon payment
• Mortgage
• Zero-Coupon Bond - Correct Answers ✅A 1 / 4

CTP Exam Practice Questions with Complete Solutions Netting is used by which of the following as a cross-border payment technique?

• European giro providers B. Foreign subsidiaries of a

company C. Counterparties in a letter of credit transaction

• TARGET participants - Correct Answers ✅D

Which of the following is a characteristic of giro systems used in countries in Europe?

• They Operate through their postal service
• They are primarily used for company-to-company

payments

• they do not replace checks for the payment of bills
• They do not allow the use of direct debits and credits -

Correct Answers ✅A A company is based in the US and has an operating subsidiary in Germany. With a stable US dollar and depreciating Euro, the Company's cash manager may elect

to:

• Pool excess funds int he US to offset Germany defecits
• Implement a dollar-based multilateral netting system
• Start lending receivables from the German subsidiary 2 / 4

CTP Exam Practice Questions with Complete Solutions

• establish a multi currency account in the US - Correct

Answers ✅C A bank issues a letter of credit (L/C) and receives a request for payment under the L/C. The buyer notifies the issuing bank not to make payment because there is a dispute over the quality of the merchandise. However, the documents received fully comply with the terms of the L/C. Which of the following statements is true?

• The buyer may immediately return the merchandise and

cancel the L/C.

• The bank may delay payment until reimbursed by the

buyer.

• The bank may delay payment, provided the seller is

notified of the dispute within three business days. D. The bank must make payment and is entitled to immediate reimbursement from the buyer. - Correct Answers ✅ The KEY decision in using CCD+ and CTX formats for B2B

payments is:

• whether to keep the payment and remittance information

together or separate. 3 / 4

CTP Exam Practice Questions with Complete Solutions

• whether to use the Internet or an EDI spoke to transmit

electronic payments.

• whether to use an EDI or a UN/EDIFACT protocol to transfer

the value electronically.

• whether an evaluated receipts or paid-on-production

technique is being used for the transfer. - Correct Answers ✅ which one of the following ties a user's private key to a user's public key

• Digital signature
• Digital certificate
• digitized signature
• digital Token - Correct Answers ✅B

For a defined benefit plan,

AFP CTP : Practice Test

• plan assets equal plan liabilities. B. plan assets can be less

than plan liabilities.

• plan assets are greater than plan equity.
• plan assets always equal plan equity. - Correct Answers

✅B

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