American Bankers Association CTFA Exam Questions Instant Access

Question 1

Which of the following give payback period of investment made?

AFuture cash flows

BPresent cash flows

COperating cash flows

DFree cash flows

Answer : A

Question 2

Which of the following bonds give the issuer the right to repay the debt prior to maturity?

AMunicipal bonds

BCallable bonds

CConvertible bonds

DZero coupon bonds

Answer : B

Question 3

Michael Cohn is a "member" (a type of owner) of a marine supply business. Michael's business is:

AA sole proprietorship

BA corporation

CA limited liability company

DA general partnership

Answer : C

Question 4

Which of the following types of bonds are usually unsecured debts maturing in 20-40 years and paying semi-annual interest?

AMunicipal bonds

BConvertible bonds

CZero coupon bonds

DCorporate bonds

Answer : D

Question 5

Many young people receive health insurance benefits through their parents. Which of the following statements is true about health insurance coverage?

AYoung people don't need health insurance because they are so healthy

BYou continue to be covered by your parents' insurance as long as you live at home, regardless of your age

CYou are covered by your parents' insurance until you marry, regardless of your age

DIf your parents become unemployed, your insurance coverage may stop, regardless of your age

Answer : D

Question 6

Maria worked her way through college earning $20,000 per year. After graduation, her first job pays $40,000. The total dollar amount Maria will have to pay in federal income taxes in her new job will:

AStay the same as when she was in college

BBe lower than when she was in college

CDouble, at least, from when she was in college

DGo up a little from when she was in college

Answer : C

Question 7

Insurance coverage provides protection against other uncertainties. Health insurance helps to pay medical bills. Disability insurance provides _____________.

AContinuing income

BMonthly expenses

CIncome after death

DBenefits on Quarterly basis

Answer : A

American Bankers Association Certified Trust and Fiduciary Advisor CTFA Exam Questions