American Bankers Association CTFA Exam Questions Instant Access

Question 1

About half of the credit cards are rebate cards, and new cards are introduced every day. In one credit card incentive program card holder earn free frequent flyer miles for each dollar charged on his/her credit card. These frequent flyer miles can then be used with airline-affiliated programs for free tickets, first --class upgrades, and other travel related benefits. This program is a/an:

AAutomobile rebate program

BFrequent flyer program

CMerchandise program

DBalance transfer program

Answer : B

Question 2

The principal reason for the existence of leasing is that:

AIntermediate-term loans are difficult to obtain

BThis is a type of financing unaffected by changes in tax law

CCompanies, financial institutions, and individuals derive different benefits from owning

DLeasing is a renewable source of intermediate-term funds

Answer : C

Question 3

Investors typically cannot ascertain the exact makeup of a fund's portfolio at any given time, nor can they directly influence which securities the fund manager buys and sells or the timing of those trades. This is because of _______ in mutual funds.

APrice uncertainty

BLack of control

CCosts despite negative returns

DAll of these

Answer : B

Question 4

Taxable income is:

AThe amount of income subject to taxes; it is calculated by subtracting expenses, the larger of itemized or standard deductions, and exemptions from gross income

BThe amount of income subject to taxes; it is calculated by subtracting adjustments, the larger of itemized or standard depreciations, and exemptions from gross income

CThe amount of income subject to taxes; it is calculated by subtracting adjustments, the larger of itemized or standard deductions, and exemptions from gross income

DThe amount of income subject to taxes; it is calculated by subtracting adjustments, the larger of itemized or standard deductions, and exemptions from earned income

Answer : C

Question 5

Principal objectives of state statutes are:

Arestrict investments of insurance entities

Bprescribe methods of admitted asset recovery

Cacquisition of risk-based capitals

DBoth B & C

Answer : A

Question 6

It is a professional financial advisor who assists overextended consumers in repairing budgets for both spending and debt repayment.

ACredit counselor

BConsumer counselor

CFinancial planner

DUnderwriter

Answer : A

Question 7

The difference between fair market value and current indebtedness is called:

ADown payment

BAmortization

CEquity

DFixed rate mortgage

Answer : A

American Bankers Association Certified Trust and Fiduciary Advisor CTFA Exam Questions