American Bankers Association CTFA Exam Questions Instant Access

Question 1

Money market funds:

ACan invest in only certain high-quality, short-term investments issued by Federal State and local government

BTry to keep their NAV at a stable $1.00 per share

CPay dividends that generally reflect short-term interest rates

DAll of these

Answer : D

Question 2

A voluntary program under Medicare that provides payments for services not covered under basic hospital insurance is called:

ASupplementary medical insurance

BMedicare

CNational health care

DBlue cross

Answer : A

Question 3

Penny stocks are traded on________:

ANYSE

BAMEX

CNASDAQ

DOTC

Answer : D

Question 4

If the following are balance sheet changes:

$5,005 decrease in accounts receivable

$7,000 decrease in cash

$12,012 decrease in notes payable

$10,001 increase in accounts payablea "use" of funds would be the:

A$7,000 decrease in cash

B$5,005 decrease in accounts receivable

C$10,001 increase in accounts payable

D$12,012 decrease in notes payable

Answer : D

Question 5

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 6

When determining the interaction between the UK and EU on the regulation of the financial services industry, the UK government must always

Aseek approval from the European Commission before implementing any new regulations.

Bimplement new EU Directives by passing acts of Parliament.

Caccommodate all EU Decisions in UK legislation.

Dprovide copies of new regulation to the European Commission within a reasonable period of time for their approval.

Answer : B

Question 7

What does the abbreviation RSI stands for?

ARepetitive String Instruments

BRelative strength index

CRapid Succession Intrigues

DReview of Symbolic Inquests

Answer : B

American Bankers Association Certified Trust and Fiduciary Advisor CTFA Exam Questions