You’re on a roll
Create a free account to save your CTP progress, track your accuracy by topic, and pick up right where you left off.
Free Questions › CTP › Treasury Technology and Payment Systems
Free CTP Treasury Technology and Payment Systems Practice Questions & Answers
150 exam-style Treasury Technology and Payment Systems questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.
100% free · No login to startQuestion 91
The ACH network rules in the United States are administered by:
Select an option first.
Correct answer: B — NACHA
Explanation: NACHA (originally the National Automated Clearing House Association) governs the operating rules for the ACH network. SWIFT is a global messaging cooperative, the SEC regulates securities, and the IRS administers taxes; none set ACH rules.
Question 92
Which statement about the RTP network operated by The Clearing House is correct?
Select an option first.
Correct answer: C — It provides real-time, 24/7/365 clearing and settlement of payments with immediate availability
Explanation: The RTP network provides real-time clearing and settlement with funds availability around the clock, every day of the year. It is a domestic U.S. instant payment rail, not weekly, not exclusively international, and not paper-based.
Question 93
An ACH credit entry is one in which:
Select an option first.
Correct answer: D — The originator pushes funds from its account to the receiver's account
Explanation: In an ACH credit, the originator pushes funds to the receiver, as in direct deposit of payroll or supplier payments. An ACH debit pulls funds from the receiver's account, as in a recurring bill payment. Funds do move, and the originator initiates the entry.
Question 94
Positive pay is a fraud-control service in which:
Select an option first.
Correct answer: A — The company sends the bank a list of issued checks and the bank matches presented checks against it
Explanation: Positive pay requires the company to transmit a file of issued checks (number, amount, and often payee) to the bank, which matches presented items against the list and flags exceptions for review. Unmatched items are not paid without approval. It is a check fraud detection control, not an automatic payment or conversion service.
Question 95
SWIFT is best described as:
Select an option first.
Correct answer: B — A secure global messaging network that financial institutions use to exchange standardized payment and financial messages
Explanation: SWIFT (Society for Worldwide Interbank Financial Telecommunication) operates a secure messaging network enabling banks and corporations to exchange standardized financial messages worldwide. It moves messages, not funds, and does not itself settle payments. It is neither a deposit-taking bank nor a credit bureau.
Get the full CTP question bank — free
Drop your email and we'll send you fresh CTP practice questions, fully worked solutions and exam-deadline reminders. No spam — unsubscribe in one click.
Want to save your score and take a full mock exam? Create a free account →
Question 96
ISO 20022 is:
Select an option first.
Correct answer: C — An international standard for structured, data-rich financial messaging using XML
Explanation: ISO 20022 is a global standard providing a common framework for financial messages, typically expressed in XML, that carry richer, more structured data than legacy formats. It is open and used across many institutions and payment systems. It is not proprietary, a hardware token, or a prohibition on electronic payments.
Question 97
A BIC (Bank Identifier Code) is used to:
Select an option first.
Correct answer: D — Uniquely identify a specific bank or financial institution in cross-border messaging
Explanation: A BIC, also known as a SWIFT code, uniquely identifies a bank or financial institution and is used to route international payments and messages. It does not encrypt messages, denote amounts, or act as a personal password.
Question 98
An IBAN (International Bank Account Number) primarily serves to:
Select an option first.
Correct answer: A — Identify an individual bank account in a standardized international format for cross-border payments
Explanation: An IBAN standardizes the identification of an individual bank account across countries, including a country code, check digits, and the domestic account details, reducing routing errors in cross-border payments. It complements rather than replaces bank identification and does not encrypt data or track physical cash.
Question 99
In SWIFT terminology, MT messages and MX messages differ in that:
Select an option first.
Correct answer: B — MT messages are the legacy FIN format while MX messages use the ISO 20022 XML standard
Explanation: MT (Message Type) refers to the legacy SWIFT FIN message format, while MX refers to the newer ISO 20022 XML-based messages that carry richer structured data. Option A reverses the definitions. The two formats are structurally different, and MX is not limited to domestic checks.
Question 100
A host-to-host bank connection refers to:
Select an option first.
Correct answer: C — A direct, automated system-to-system link between a company's ERP/TMS and its bank for exchanging files
Explanation: Host-to-host connectivity establishes a direct, automated system-to-system channel between a corporate system (ERP or TMS) and the bank, enabling secure exchange of payment and reporting files without manual portal logins. It is not a manual, telephone, or courier process.
Question 101
Electronic bank account management (eBAM) is used to:
Select an option first.
Correct answer: B — Digitally manage the opening, closing, and maintenance of bank accounts and signatories
Explanation: eBAM digitizes and streamlines the administrative processes of opening, closing, and modifying bank accounts and managing authorized signatories, often using standardized electronic messages. It reduces paperwork and improves audit trails and control. It is not a check-printing, trading, or email-encryption tool.
Question 102
A BAI2 file is primarily a:
Select an option first.
Correct answer: C — Bank reporting format for transmitting balance and transaction information to a company
Explanation: BAI2 (Bank Administration Institute format, version 2) is a widely used cash-management reporting format banks use to deliver prior-day and intraday balance and transaction data to corporate customers for cash positioning and reconciliation. It reports information rather than initiating payments, and it is not a contract or marketing document.
Question 103
A SWIFT MT940 message is used to convey:
Select an option first.
Correct answer: D — A customer statement with end-of-day balance and transaction detail
Explanation: The MT940 is a SWIFT customer statement message that delivers end-of-day account balance and transaction detail from a bank to an account holder, commonly used for reconciliation and cash reporting. It is a reporting message, not a chat, shipment, or purchase-order document.
Question 104
Which SWIFT message provides intraday transaction reporting to help with same-day cash positioning?
Select an option first.
Correct answer: A — MT942 (interim transaction report)
Explanation: The MT942 is an interim transaction report that delivers intraday movements between full statements, supporting same-day cash positioning. The MT103 is a payment instruction, the MT101 is a request for transfer, and the MT300 confirms FX trades, none of which are intraday reporting statements.
Question 105
Prior-day bank reporting is most useful to a treasurer for:
Select an option first.
Correct answer: B — Reconciling the previous day's activity and confirming closing balances
Explanation: Prior-day reporting delivers the previous business day's finalized transactions and closing balances, which supports reconciliation and confirmation of the starting position for the current day. Real-time intraday actions require intraday reporting instead. It has no role in stock prediction or badge printing.
Question 106
A key benefit of eBAM over paper-based bank account management is:
Select an option first.
Correct answer: C — A centralized, auditable digital record of accounts and signatories
Explanation: eBAM provides a centralized, standardized, and auditable electronic record of bank accounts, mandates, and authorized signatories, improving control, transparency, and processing speed over paper-based methods. It does not eliminate bank relationships or affect interest rates, and it reduces rather than increases manual effort.
Question 107
An MT103 message in the SWIFT network is used to:
Select an option first.
Correct answer: A — Instruct a single customer credit transfer (a payment)
Explanation: The MT103 is a single customer credit transfer message used to instruct the movement of funds from a payer to a beneficiary across correspondent banks. It is a payment instruction, distinct from statement messages (MT940/MT942) and FX confirmations (MT300).
Question 108
A company processes 400 supplier payments per month. Executing them as wires costs $22 each; executing them via ACH costs $0.30 each. What is the approximate monthly savings from moving all these payments from wire to ACH?
Select an option first.
Correct answer: B — $8,680
Explanation: Per-payment savings equal $22.00 minus $0.30, or $21.70. Multiplied by 400 payments: 400 x $21.70 = $8,680 per month. The distractors ignore the ACH cost or use rounded per-unit figures.
Question 109
A TMS implementation costs $180,000 up front and is expected to save $7,500 per month in labor and error-reduction benefits. Ignoring the time value of money, what is the simple payback period?
Select an option first.
Correct answer: C — 24 months
Explanation: Simple payback equals initial cost divided by monthly savings: $180,000 / $7,500 = 24 months. This ignores discounting, as specified. The other options do not satisfy the division.
Question 110
A company writes a $3,000,000 check with an expected disbursement float of 4 days. If the firm's opportunity cost of funds is 5% per year (365-day basis), what is the approximate value of that disbursement float?
Select an option first.
Correct answer: B — $1,644
Explanation: Daily opportunity value is $3,000,000 x 0.05 / 365 = $410.96 per day. Over 4 days of float: $410.96 x 4 = $1,643.84, or approximately $1,644. The distractors use the wrong number of days or a misplaced decimal.
Question 111
A retailer processes a $200 card sale. The card network charges 2.4% plus a $0.15 per-transaction fee. What is the total processing cost of this transaction?
Select an option first.
Correct answer: C — $4.95
Explanation: The percentage fee is 2.4% of $200 = $4.80. Adding the flat $0.15 per-transaction fee gives $4.80 + $0.15 = $4.95. Option A omits the flat fee and option D counts only the flat fee.
Question 112
A firm can pay a vendor either by wire at $18.00 or by Same Day ACH at $1.25. If it makes 250 such payments monthly, what is the annual savings from choosing Same Day ACH?
Select an option first.
Correct answer: D — $50,250.00
Explanation: Per-payment savings equal $18.00 minus $1.25 = $16.75. Monthly savings: 250 x $16.75 = $4,187.50. Annual savings: $4,187.50 x 12 = $50,250.00. Option A is only the monthly figure and C understates the annual total.
Question 113
A lockbox service reduces mail and processing float by 1.5 days on average daily receipts of $800,000. At an annual investment rate of 4% (360-day basis), what is the approximate daily value of the float reduction?
Select an option first.
Correct answer: A — $133.33
Explanation: Accelerated collections free up 1.5 days x $800,000 = $1,200,000 of funds. The daily earnings on that amount are $1,200,000 x 0.04 / 360 = $133.33. Option B omits the 1.5-day multiplier and option C is the freed principal rather than its daily earnings.
Question 114
A company sends 1,200 cross-border payment messages per month. A bank API solution costs a flat $900 per month, while a legacy per-message channel costs $1.10 per message. How much does the company save monthly by switching to the API?
Select an option first.
Correct answer: C — $420
Explanation: The legacy channel costs 1,200 x $1.10 = $1,320 per month. The API costs a flat $900. Monthly savings equal $1,320 minus $900 = $420. Option A is the legacy cost and B is the API cost, not the savings.
Question 115
An IBAN validation reduces failed cross-border payments. A firm makes 5,000 cross-border payments monthly; without validation, 1.2% fail and each failure costs $40 in repair. If validation cuts the failure rate to 0.2%, what is the monthly cost reduction?
Select an option first.
Correct answer: D — $2,000
Explanation: Before validation, failures = 5,000 x 1.2% = 60, costing 60 x $40 = $2,400. After validation, failures = 5,000 x 0.2% = 10, costing 10 x $40 = $400. The reduction is $2,400 minus $400 = $2,000. Option C is the pre-validation cost only.
Question 116
A company maintains bank connectivity to 8 banks via proprietary links costing $1,500 per bank per year. Consolidating onto a single SWIFT channel costs $9,000 per year total. What is the annual savings from consolidation?
Select an option first.
Correct answer: D — $3,000
Explanation: The proprietary links cost 8 x $1,500 = $12,000 per year. The consolidated SWIFT channel costs $9,000 per year. Savings equal $12,000 minus $9,000 = $3,000. Option C is the total proprietary cost before consolidation.
Question 117
A treasury analyst spends 3 hours per day manually consolidating bank statements from 6 banks. Automating BAI2 imports into the TMS is expected to cut this to 30 minutes per day. Over 250 working days, how many analyst hours are saved annually?
Select an option first.
Correct answer: A — 625 hours
Explanation: Daily time saved is 3 hours minus 0.5 hours = 2.5 hours. Over 250 working days: 2.5 x 250 = 625 hours saved annually. Option C incorrectly assumes all 3 hours are eliminated.
Question 118
A firm currently mails 2,000 supplier checks per month at a fully loaded cost of $2.75 each. Converting to ACH would cost $0.35 each plus a fixed $500 monthly platform fee. What is the monthly savings from converting all payments to ACH?
Select an option first.
Correct answer: D — $4,300
Explanation: Check cost is 2,000 x $2.75 = $5,500 per month. ACH cost is 2,000 x $0.35 = $700 plus the $500 platform fee = $1,200 per month. Savings equal $5,500 minus $1,200 = $4,300. Option B ignores the platform fee.
Question 119
Why might a company implement a payment factory alongside its TMS?
Select an option first.
Correct answer: C — To centralize and standardize payment processing across entities, improving control and reducing bank fees
Explanation: A payment factory centralizes and standardizes outbound payment processing across multiple entities, enabling consistent formats, consolidated bank connectivity, stronger controls, and reduced per-transaction and banking costs. It is a centralization strategy, the opposite of decentralizing to local banks. It strengthens rather than removes approval controls.
Question 120
A treasury team notices that bank statement data imports into the TMS but does not auto-match to open items during reconciliation. The most likely improvement is to:
Select an option first.
Correct answer: D — Enhance the auto-reconciliation matching rules and standardize remittance reference data
Explanation: Auto-matching depends on consistent, structured reference data (such as invoice numbers in remittance fields) and well-configured matching rules within the TMS. Improving those rules and standardizing remittance information increases straight-through reconciliation rates. Stopping imports, reverting to checks, or deleting open items would not solve the matching problem and would harm operations.
More free CTP topics
Ten questions in
- The ones you miss are saved as a drill you can repeat
- Your place is kept, on this device and any other
- A streak, if that is the thing that gets you back tomorrow
Every question on this page stays free and open either way.