AFP CTP Exam
Certified Treasury Professional (Page 32 )

Updated On: 19-Jan-2026

Trade terms are renegotiated under e-commerce in order to:

  1. balance the payment.
  2. neutralize the float.
  3. quantify the savings.
  4. improve the seller's availability.

Answer(s): B



When a supplier uses evaluated receipts settlement (ERS), which of the following statements is true?

  1. The supplier does not send an invoice.
  2. The customer selects the payment date.
  3. Payment must be made before goods can be shipped.
  4. Payables are processed manually.

Answer(s): A



An option can be exercised in the market at its:

  1. premium.
  2. put price.
  3. call price.
  4. strike price.

Answer(s): D



Which of the following can be exercised only on the expiration date?

  1. American options
  2. European options
  3. Commodity swaps
  4. Basis swaps

Answer(s): B



A company may choose to use a derivative to reduce risk on which of the following types of exposure?

I). Currency
II). Interest rate
III). Commodity price

  1. I and II only
  2. I and III only
  3. II and III only
  4. I, II, and III

Answer(s): D



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