AFP Exam CTP Topic 5 Question 3 Discussion

Actual exam question for AFP's CTP exam

Question #: 3
Topic #: 5

[All CTP Questions]

An international organization has decided to move its treasury operations to the head office in Paris, France. The company's goal is to establish the treasury as the primary provider of banking services and all company financing. What would the new proposal be an example of?

AA hybrid treasury structure

BA decentralized and a re-engineered organization

CAn in-house bank and a centralized organization

DAn outsourced shared service center

Show Suggested Answer

Suggested Answer: C

by Weldon at Mar 06, 2025, 08:28 PM

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Raylene

25 days ago

Centralizing the treasury operations in Paris? Sounds like a recipe for a Parisian revolution if you ask me. Just kidding, but seriously, this is clearly an in-house bank and a centralized organization.

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Malcom

27 days ago

Well, at least they're not outsourcing their treasury to a shared service center. That would be like letting the fox guard the henhouse, if you ask me.

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Josphine

3 days ago

I agree, keeping the treasury in-house is definitely a safer option.

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Reuben

5 days ago

C) An in-house bank and a centralized organization

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Malissa

6 days ago

A) A hybrid treasury structure

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Jennie

29 days ago

I see your point, Willard. It could be a combination of both a hybrid structure and a centralized organization.

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Willard

1 months ago

But wouldn't it also be considered an in-house bank and a centralized organization?

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Louis

1 months ago

I agree with Buck, it makes sense to centralize the treasury operations in Paris.

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Raul

1 months ago

This is definitely an in-house bank and a centralized organization. Centralizing all the company's financing under the Paris headquarters is a classic example of a centralized treasury setup.

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Gerri

18 days ago

Having a centralized treasury can also lead to better control and efficiency in managing the company's finances.

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Reed

20 days ago

It would also help streamline the banking services and financing for the entire company.

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Alecia

1 months ago

I agree, centralizing the treasury operations in Paris would definitely make it an in-house bank and a centralized organization.

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Mary

1 months ago

I'm not sure, but I think this could also be considered a hybrid treasury structure. Centralizing the treasury operations while still maintaining some decentralized aspects seems like a hybrid approach.

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Macy

2 months ago

This new proposal sounds like an in-house bank and a centralized organization to me. The goal of establishing the treasury as the primary provider of banking services and financing makes it a centralized model.

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