CTP Cheat Sheet 2026

The 30 highest-yield CTP facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. In treasury operations, 'nostro account reconciliation' refers to reconciling which accounts? → A bank's accounts held at a correspondent bank in a foreign currency
2. A currency option that gives the holder the right to sell foreign currency at a fixed strike price is called a: → Currency put option
3. What is the primary treasury risk associated with using paper checks compared to electronic payments? → Extended float, physical alteration risk, and longer return/dispute timelines
4. A company wants to fund a long-term capital project but avoid balance sheet debt. Which off-balance sheet structure historically served this purpose? → Operating lease under old GAAP (pre-ASC 842)
5. In risk management, 'rollover risk' most commonly refers to: → The risk that a hedge cannot be rolled forward at acceptable cost or terms
6. Which bond covenant directly restricts a company from taking on additional debt beyond a specified level? → Debt incurrence covenant
7. Under SEC Rule 2a-7, money market funds must maintain a minimum percentage of assets in 'weekly liquid assets.' What is the current minimum threshold? → 30%
8. Which cost behavior pattern describes a cost that remains fixed within a relevant range but jumps to a higher level when activity exceeds that range? → Step-fixed cost
9. A company offers terms of 2/10 net 30. What is the approximate annualized cost of NOT taking the discount? → 36.7%
10. Under a securities lending program, the cash collateral received by the lender is typically reinvested in: → Short-term, high-quality money market instruments
11. A company's days sales outstanding (DSO) increases from 35 to 50 days while revenue stays flat. What is the direct financial planning implication? → More working capital will be needed to fund the higher receivables balance
12. Liquidity risk in a derivatives portfolio is most likely to become acute when: → Interest rates fall sharply and a pay-fixed swap is out of the money
13. All of the following are primary objectives of accounts receivable management EXCEPT: → Maximizing the days sales outstanding (DSO).
14. Which statement about the NPV method is CORRECT? → NPV directly measures value added to the firm in dollar terms
15. Under Modigliani-Miller with taxes, the value of a levered firm equals the unlevered firm value plus: → The tax shield on debt (tax rate × debt)
16. Which of the following represents an operational risk rather than a financial market risk in a treasury context? → A trader entering a transaction in the wrong currency due to a system error
17. A notional pooling arrangement differs from physical cash pooling primarily because: → Notional pooling offsets balances for interest calculation without moving actual funds
18. Which of the following is NOT a typical component of a corporate risk management policy statement? → Specific profit targets from speculative trading positions
19. In an integrated financial model, which statement drives changes in the balance sheet's cash position? → Statement of cash flows ending cash balance
20. A company's weighted average cost of capital (WACC) is 8%. Its short-term investments yield 4%. What is the opportunity cost of holding excess cash? → The difference between WACC and the investment yield (4%)
21. Debt ratios are used to assess a company's level of debt, with the exception of: → Current ratio
22. Which rolling forecast approach updates projections by dropping the most recently completed period and adding a new future period? → Rolling 12-month forecast
23. When evaluating a company's liquidity risk, which scenario represents a LIQUIDITY TRAP? → Excess cash is invested in long-term illiquid securities when short-term needs arise
24. The Dodd-Frank Act's clearing and reporting mandates for OTC derivatives were primarily intended to: → Reduce systemic risk by increasing transparency and moving standard contracts to CCPs
25. A treasury department uses a lockbox network to accelerate collections. The PRIMARY benefit of a lockbox system is: → Accelerating mail and processing float to increase available funds sooner
26. Which regulatory body has primary oversight of swap markets under the Dodd-Frank Wall Street Reform and Consumer Protection Act? → Commodity Futures Trading Commission (CFTC)
27. Enterprise Risk Management (ERM) differs from traditional siloed risk management primarily because ERM: → Considers all risks holistically across the organization and their interdependencies
28. Which SWIFT message type is used for a standard customer credit transfer between financial institutions? → MT103
29. What is the Currency Transaction Report (CTR) filing threshold under the Bank Secrecy Act? → $10,000
30. Under the COSO ERM framework, 'risk appetite' is best defined as: → The amount of risk an organization is willing to accept in pursuit of its objectives