Failing to act in a reasonable manner

Failing to take necessary steps to protect others from harm

Failing to act in a reasonable manner

Failing to take necessary steps to protect others from harm

A provision in property insurance

A provision in actual cash value

A provision in liability insurance

A provision in health insurance

Many types of properties are covered by homeowner's policies. These policies also define the types of losses they cover and the persons and the locations covered. There are three types of property-related losses when misfortune occurs. Which one of the following is Not out of those losses?

Indirect loss occurring due to damaged property

Additional expenses occurring due to direct and indirect losses

It is an automobile insurance that reimburses the parties involved in an accident without regard to negligence.

Comprehensive automobile insurance

Automobile accidental damage coverage

An insurance policy providing excess liability coverage for homeowner's and automobile insurance as well as additional coverage not provided by either policy is referred as:

Personal liability umbrella policy

What can be the possible strategy to avoid liability?

Understand what causes liability

Carry adequate liability insurance

Understand what causes liability

Carry adequate liability insurance

People often put money aside, sometimes for years, to save up enough to make just one major expenditure. Here are some common ones. Which of the following is Not out of those expenditures.:

Some capital for going into business

Which of the following is least likely to be considered a short-term marketable security?

An original issue 30-year corporate bond with one-year remaining until final maturity

An original issue 30-year government bond with one-year remaining until final maturity

Short-term corporate debt instruments with a 9-month original maturity

Which of the following is not a standard method of transferring funds when using concentration banking?

Automated clearinghouse electronic transfer

Which of the following marketable securities is issued by the U.S. federal government?

Negotiable certificates of deposit

Which of the following statements most accurately describes the modern approach to cash management?

Cash management involves the efficient processing, collection, and depositing of cash

Cash management involves the efficient disbursement of cash

Cash management involves the efficient collection and disbursement of cash

Cash management involves the efficient processing, collection, and depositing of cash

Cash management involves the efficient processing and depositing of cash

Collection float is the __________.

Total time between the mailing of the check by the customer and the availability of cash to the receiving firm

Time consumed in clearing the check through the banking system

Time during which the check received by the firm remains uncollected

Deposit float is the __________.

Time during which the check received by the firm remains uncollected

Total time between the mailing of the check by the customer and the availability of cash to the receiving firm

Time consumed in clearing the check through the banking system

Time during which the check received by the firm remains uncollected

Availability float is the __________.

Time consumed in clearing the check through the banking system

Total time between the mailing of the check by the customer and the availability of cash to the receiving firm

Time consumed in clearing the check through the banking system

Time during which the check received by the firm remains uncollected

Eurodollars are best described as __________.

A U.S. dollar-denominated deposit -- generally in a bank located outside the United States -- that is not subject to U.S. banking regulations

The new currency of the European Union

A U.S. dollar-denominated deposit -- generally in a bank located outside the United States -- that is not subject to U.S. banking regulations

A currency deposited outside its country of origin

A foreign-denominated deposit subject to U.S. banking regulations

Which of the following statements concerning remote disbursement and controlled disbursement is correct?

Remote disbursement is often viewed as an unethical disbursement procedure, whereas controlled disbursement is not viewed in such a negative light

These two terms mean the same thing--just like working capital means the same thing as current assets

Remote disbursement is viewed as an ethical disbursement procedure, whereas controlled disbursement is often viewed as an unethical disbursement procedure

Both remote and controlled disbursement are generally perceived as unethical practices and, therefore, their use is in decline

Remote disbursement is often viewed as an unethical disbursement procedure, whereas controlled disbursement is not viewed in such a negative light

A portfolio manager is evaluating investments in mortgage securities as part of a portfolio to fund long term liabilities. If she wants to minimize prepayment risk in her portfolio she is most likely to invest in:

Collateralized mortgage obligations

Mortgage pass through securities

Collateralized mortgage obligations

Compared to investors with long investment time horizons, investors with short investment time horizons most likely require:

More liquidity and less emphasis on capital appreciation

Less liquidity and less emphasis on capital appreciation

More liquidity and less emphasis on capital appreciation

Less liquidity and greater emphasis on capital appreciation

More liquidity and greater emphasis on capital appreciation

A primary motivation for investment in commodities is most likely the:

Positive correlation of commodities with unexpected inflation

Positive correlation of commodities with stock and bond investments

Positive volatility of commodities relative to stock and bond investments

Positive correlation of commodities relative to stock and bond investments

ABA CTFA Practice Test 11 - Free Online Exam Questions 401-440

Insurance coverage that protects real and personal property from catastrophic losses caused by a variety of perils, such as fire, theft, vandalism, and windstorm is referred as:

Become a Premium Member for full access

Unlock Premium Member

ABA CTFA Practice Test 11

Question

Drag and Drop

Hot Area

ABA CTFA Practice Tests

Practice Tests