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Key Facts: ACT CertTF Exam

75 Qs

Exam Questions

ACT CertTF Syllabus

76%

Pass Mark

ACT CertTF Syllabus

90 min

Time Limit

ACT CertTF Syllabus

CertTF is a 90-minute, 75-question proctored online assessment with a 76% pass mark, covering core treasury operations, financial markets, and quantitative financial math.

Sample ACT CertTF Practice Questions

Try these sample questions to review concepts for the ACT CertTF exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following best describes the primary distinction between the corporate treasury function and the financial accounting function?

A.Treasury focuses on managing future cash flows, financial risks, and capital structure, whereas financial accounting focuses on recording historical transactions and external financial reporting.

B.Treasury is primarily responsible for calculating tax liabilities, whereas accounting manages bank relationship management and liquidity.

C.Treasury prepares the annual statutory balance sheet, whereas accounting determines dividend policies and debt issuance.

D.Treasury is responsible for inventory valuation, whereas accounting manages short-term interest rate risk hedging.

Explanation: Corporate treasury is forward-looking and focuses on cash management, liquidity, capital allocation, and financial risk mitigation. Financial accounting is historical in nature, focusing on transaction recording, compliance, and financial statement preparation.

2Who holds ultimate responsibility for approving a corporation's overall Treasury Policy framework?

A.The Chief Financial Officer (CFO)

B.The Board of Directors

C.The Group Treasurer

D.The External Audit Committee

Explanation: The Board of Directors holds ultimate fiduciary and governance responsibility for approving the company's financial risk appetite and overall Treasury Policy.

3A corporate treasury faces potential loss due to counterparty default on a cross-currency swap. Which financial risk category does this risk belong to?

A.Market Risk

B.Counterparty Credit Risk

C.Liquidity Risk

D.Operational Risk

Explanation: Counterparty credit risk is the risk that a financial counterparty defaults on its contractual obligations prior to final settlement of cash flows.

4Which organizational model centralizes cash management, debt issuance, and FX risk management at headquarters while leaving local operational payments to operating units?

A.Fully Decentralized Treasury

B.Centralized Treasury with Regional Centers

C.Outsourced Treasury Function

D.Shared Services Accounting Desk

Explanation: A centralized treasury model (often supported by regional treasury centers) centralizes strategic financial management, risk management, and bank relationships to achieve economies of scale and control.

5What is the key advantage of implementing an In-House Bank (IHB) within a multinational corporate group?

A.Eliminating corporate tax obligations across all operating jurisdictions

B.Replacing commercial bank clearing networks for external retail transactions

C.Reducing external bank transactions, margins, and fees through internal net settlement

D.Guaranteeing immunity from local currency exchange control restrictions

Explanation: An In-House Bank acts as an internal bank for group subsidiaries, netting intercompany balances and executing transactions internally to minimize external banking fees, FX spreads, and bank balances.

6In a modern treasury infrastructure, what is the core role of a Treasury Management System (TMS)?

A.Processing customer retail invoice generation and inventory tracking

B.Automating debt/investment tracking, cash positioning, FX deal execution, and bank connectivity

C.Filing statutory tax returns and managing payroll distribution

D.Calculating employee sales commissions and expense reimbursements

Explanation: A Treasury Management System (TMS) automates front-, middle-, and back-office treasury functions including deal capture, position tracking, cash visibility, risk management, and bank reporting.

7To maintain robust internal controls and prevent fraud, which key operational principle requires separate personnel for deal execution and deal confirmation/settlement?

A.Four-Eye Principle

B.Segregation of Duties

C.Dual Authorisation Limit

D.Straight-Through Processing

Explanation: Segregation of duties ensures that Front Office (deal execution) is strictly independent from Back Office (deal confirmation, settlement, and accounting) to mitigate operational risk and fraud.

8According to the Association of Corporate Treasurers (ACT) Code of Conduct, what must a treasury professional prioritize when encountering a conflict of interest?

A.Maximizing short-term corporate trading profits before declaring the conflict

B.Promptly disclosing the conflict of interest to relevant stakeholders and acting with integrity

C.Transferring the conflict to an external banking counterparty

D.Keeping the conflict confidential to protect corporate reputation

Explanation: The ACT Ethical Code mandates transparency, integrity, professional competence, and immediate disclosure of any real or perceived conflicts of interest.

9What document formalizes performance benchmarks, operational response times, and pricing commitments between a corporate treasury and its transaction bank?

A.International Swaps and Derivatives Association (ISDA) Master Agreement

B.Service Level Agreement (SLA)

C.Revolving Credit Agreement

D.Debt Covenant Certificate

Explanation: A Service Level Agreement (SLA) outlines the operational standards, cut-off times, error resolution procedures, and service benchmarks expected from a relationship bank.

10Which counterparty risk mitigation tool allows a treasury to set maximum money market deposit caps based on a bank's credit rating and CDS spread?

A.Counterparty Exposure Limits Framework

B.Interest Rate Swap Facility

C.Netting Agreement

D.Value at Risk (VaR) Buffer

Explanation: A Counterparty Exposure Limit Framework establishes quantitative caps on cash deposits, derivatives, and credit facilities per financial institution based on independent credit assessments.

About the ACT CertTF Exam

The Certificate in Treasury Fundamentals (CertTF) is the benchmark introductory qualification awarded by the Association of Corporate Treasurers (ACT), equipping professionals with essential knowledge in treasury operations, cash management, corporate finance, and financial calculations.

Exam sponsor: Association of Corporate Treasurers (ACT). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

75 MCQs (25% Corporate Treasury, 30% Cash Management, 25% Corporate Finance, 20% Financial Math).

Time Limit

90 minutes

Passing Score

76%

Exam / Certification Fees

£1,215

Exam sponsor website

Reported exam pass rate: ~65-70%. Based on ACT candidate outcome statistics. This describes exam candidates, not OpenExamPrep users or results from using our resources. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

ACT Qualification Page - CertTF

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

25%

Corporate Treasury Role & Environment

Organization of treasury, governance, policy framework, treasury controls, and ethics.

30%

Treasury Operations & Cash Management

Cash forecasting, working capital optimization, cash pooling, payment systems, and bank account architecture.

25%

Corporate Finance & Financial Markets

Capital structure, money markets, bond markets, foreign exchange, interest rate risk, and credit risk.

20%

Calculation & Financial Mathematics

WACC, money market yields, bond valuation, FX forward rates, interest rate parity, and discounted cash flows.

Preparing for the ACT CertTF Exam

What You Need to Know

Passing score: 76%
Assessment: 75 MCQs (25% Corporate Treasury, 30% Cash Management, 25% Corporate Finance, 20% Financial Math).
Time limit: 90 minutes
Exam / certification fees: £1,215 Official sources

Using Our Practice Resources

Work through all 100 available questions
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ACT CertTF: Suggested Study Strategy

1Master financial formulas including money market yield, interest rate parity, and WACC.

2Practice multi-step cash forecasting and working capital ratio calculations.

3Understand the operational mechanics of physical and zero-balance cash pooling.

Frequently Asked Questions

What is the ACT CertTF exam format?

The CertTF exam is a 90-minute proctored computer-based test containing 75 multiple-choice questions, including 16 numerical calculation items.

What is the pass mark for CertTF?

The pass mark is 76% (answering at least 57 out of 75 questions correctly).

How much does the CertTF qualification cost?

The course fee is £1,215, which includes study materials and the first assessment entry.