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. A currency option that gives the holder the right to sell foreign currency at a fixed strike price is called a: → Currency put option
2. Under a securities lending program, the cash collateral received by the lender is typically reinvested in: → Short-term, high-quality money market instruments
3. All of the following are primary objectives of accounts receivable management EXCEPT: → Maximizing the days sales outstanding (DSO).
4. Debt ratios are used to assess a company's level of debt, with the exception of: → Current ratio
5. 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)
6. What is the Currency Transaction Report (CTR) filing threshold under the Bank Secrecy Act? → $10,000
7. A treasury manager evaluating credit risk in the short-term investment portfolio should primarily assess the issuer's: → Short-term credit ratings from NRSRO agencies and financial ratios
8. An agency security issued by the Federal Home Loan Banks (FHLB) to fund short-term liquidity needs of member banks is an example of a: → Government-sponsored enterprise (GSE) discount note
9. A repurchase agreement (repo) is best described as: → A sale of securities with an agreement to repurchase them at a higher price
10. Which short-term investment is NOT subject to federal income tax at the investor level for U.S. taxable entities? → Municipal notes
11. What does a negative basis in the cross-currency basis swap market typically indicate? → Excess USD demand relative to other currencies
12. In the context of working capital management, which of the following is defined as current assets minus current liabilities? → Net working capital
13. Which of the following statements best describes the primary effect of increasing a company's financial leverage? → It magnifies the impact of changes in EBIT on earnings per share (EPS).
14. A revolving credit facility that can be drawn as either a traditional loan or used to support commercial paper issuance is known as a: → 364-day facility
15. Which money market instrument is an unsecured, short-term debt obligation issued by highly rated corporations to fund immediate operating needs? → Commercial paper
16. Which of the following devices makes loan documentation for various advance features simpler? → Master note
17. Which yield calculation method for short-term instruments accounts for the compounding effect of reinvesting interest at maturity? → Effective annual yield (EAY)
18. Under the CTP exam framework, which hedging ratio approach adjusts the hedge position dynamically as market conditions change? → Delta hedging
19. There are several ways to extend credit, EXCEPT: → open item
20. Which U.S. regulation primarily requires financial institutions to implement Anti-Money Laundering (AML) programs and Know Your Customer (KYC) procedures? → Bank Secrecy Act (BSA)
21. Which short-term borrowing facility allows a company to issue commercial paper directly to investors while a bank provides a backstop line of credit? → Asset-backed commercial paper conduit
22. A global corporation is considering implementing a Treasury Management System (TMS). Which of the following is a primary strategic benefit of adopting a TMS? → It provides centralized visibility and control over global cash positions.
23. Which foreign exchange order type specifies execution at the best available rate only if the market moves to or through a specified price level? → Limit order
24. The interest rate parity (IRP) condition links forward exchange rates to the difference in: → Nominal interest rates between two countries
25. An agreement that grants the right to purchase a certain quantity of common shares at a particular price is referred to as: → an equity warrant
26. The SOFR (Secured Overnight Financing Rate) replaced LIBOR as the preferred reference rate for floating-rate instruments primarily because SOFR is: → Based on actual repo transactions and is transactions-based
27. A company is experiencing a lengthening of its cash conversion cycle. Which of the following is the most likely cause? → An increase in the days sales outstanding (DSO).
28. The majority of the above are treasury management duties, EXCEPT: → collecting and presenting financial information
29. A U.S. multinational centralizing FX risk management uses a regional treasury center. Which of the following best describes an in-house bank structure? → A central treasury entity intermediates between subsidiaries and external banks
30. A company's investment policy statement (IPS) for short-term investments typically prioritizes objectives in which order? → Safety, liquidity, yield