AFP CTP Exam
Certified Treasury Professional (Page 8 )

Updated On: 19-Jan-2026

A good credit rating has which of the following effects on debt?

I). Improved marketability
II). Decreased cost of funds
III). Decreased maturity
IV). Increased dealer fees

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

Answer(s): B



The process by which a bank or insurance company guarantees the debt obligation of a borrower is referred to as credit:

  1. enhancement.
  2. rating.
  3. scoring.
  4. options.

Answer(s): A



Which of the following short-term instruments is used to finance the import or export of goods?

  1. Convertible bond
  2. Government warrant
  3. Bill of lading
  4. Banker's acceptance

Answer(s): D



Which of the following is a negotiable time draft?

  1. Commercial paper
  2. Check
  3. Master note
  4. Banker's acceptance

Answer(s): D



Which of the following is NOT characteristic of commercial paper with a term of less than 270 days?

  1. It is usually sold through a dealer.
  2. It is considered an unsecured promissory note.
  3. It typically costs less than bank debt.
  4. It must be registered with the SEC.

Answer(s): D



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