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Free American Bankers Association Certified Trust and Fiduciary Advisor CTFA Exam Questions

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Question 1

The main objective/s of an audit of swaps is/are:

Correct Answer: D. All of these

Question 2

Sound financial planning dictates that you need a good idea of how much credit you can comfortably tolerate. One can do some measures to build a strong credit history. Which of the below mentioned points can be out of those measure?

Correct Answer: A. Fulfill all the terms of credit; B. Be consistent in making payments promptly

Question 3

If capital is to be rationed for only the current period, a firm should probably first consider selecting projects by descending order of .

Correct Answer: D. Profitability index

Question 4

A company that might not have historical perspective in background but it will find a place in the future depending on the product or industry is a ___________.

Correct Answer: D. Growth company

Question 5

Margin accounts are mostly used by:

Correct Answer: D. All of the above

Question 6

All of the following are examples of financial assets EXCEPT.

Correct Answer: B. Transport vehicles

Question 7

Which of the following estimates are needed while applying fundamental analysis to the market?

Correct Answer: D. All of given options

Question 8

The optimal balance of marketable securities held to take care of probable deficiencies in the firm's cash account is referred to as the __________ segment in the one's portfolio of shortterm marketable securities.

Correct Answer: A. Ready cash

Question 9

The maximum percentage of the value of a property that the lender is willing to loan is called:

Correct Answer: A. Loan to value ratio

Question 10

Which of the following does not pay fix income (interest/ dividend) to investors?

Correct Answer: B. Government bond

Question 11

Who is responsible for accounting for customer remittance advices and the agent's current account?

Correct Answer: D. Premium collection department

Question 12

All of the following are the problem associated with the Dividend Discount Model Except:

Correct Answer: D. This model requires constant earnings per share

Question 13

A systematic approach to selecting and financing a vehicle can mean significant savings. Before making any major purchase-whether it's a car, house, or large appliance-consider some basic guidelines to wise purchasing decisions.

Correct Answer: D. Both A and B

Question 14

Which of the following shows relationship between two moving averages of prices?

Correct Answer: A. Moving average convergence/divergence

Question 15

According to multiple of earnings method, the rule of thumb used by many insurance agents is that your insurance coverage should be equal to 5 to 10 times your current income. For example, if you currently earn $70,000 a year, using the multiple of earning method then you need between:

Correct Answer: D. $350,000 and $700,000 life insurance