The duration of a bond:

Is less than the maturity for bonds paying coupon interest

Is directly related to coupon yield

Is greater than maturity for zero coupon bond

Leverage ratios are designed to:

Measure a company's capital structure

Measure the quality of a company's operation

Measure a company's ability to cover its short term obligations

Measure the percentage of earnings paid to shareholders

Which of the following statements hold true for ask price?

It is a price at which a broker is willing to sell a certain security

It is a price at which a broker is willing to buy a certain security

It is a quoted price in order to buy the shares of a company

It is the rate at which a dealer will buy the base currency

The three broad categories of financial assets are:

Debt, equity and money market securities

Corporate securities, derivatives and equity

long term debt, equity and money market securities

In which of the following cases the buy decision be taken?

Where the intrinsic value is lesser than the current market price as the asset is overvalued

Where the intrinsic value is greater than the current market price as the asset is overvalued

Where the intrinsic value is lesser than the current market price as the asset is overvalued

Where the intrinsic value is equivalent than the current market price as the asset is acquired

Where the current market price has doubled than the intrinsic value as the asset is distributed

Which of the following index is price weighted?

New York stock exchange composite

Which of the following statements hold true for spread?

It is the difference between bid and ask price

It is a price asked by seller of securities from buyers

It is a quoted price in order to buy shares of a company

It is the rate at which a dealer will buy the base currency

It is the difference between bid and ask price

In which of the following cases the sell decision be taken?

Where the intrinsic value is lesser than the current market price as the asset is overvalued

Where the intrinsic value is greater than the current market price as the asset is overvalued

Where the intrinsic value is lesser than the current market price as the asset is overvalued

Where the intrinsic value is equivalent than the current market price as the asset is acquired

Where the current market price has doubled than the intrinsic value as the asset is distributed

All of the following is required to calculate the present value figure Except:

The amount of future cash flows

Insurance policies may be classified in which of the following categories?

By kind of insurance underwritten

In _________________, an adjustment is based on experience of an individual risk during the term of the policy and is generally subject to maximum and minimum premium limits specified in the policy.

Retrospective premium adjustments

Home office record-maintenance methods may include:

maintenance of detailed entries for analytical purposes

use of planning procedures from main office for both premiums and cash

The subsequent measurement of the deposits is based upon whether the insurance and reinsurance contract:

transfer only significant timing risk

transfer only significant underwriting risk

transfer neither significant timing nor underwriting risk

In many states, a claims-made insurance policy is required to:

contain an extended-reporting clause

provide for purchase, at the policyholder's option

provide for automatic tail coverage

Which of the following in Not the flow of transaction through the claims cycle?

Quick-tail lines claim acceptance

Claims adjusting involve:

approval by entity's claims department

an appraisal of risk subject to appropriate supervision

approval by entity's claims department

ABA CTFA Practice Test 20 - Free Online Exam Prep & Questions

Spam

Selling illegal goods, money scams etc.

Hate Speech

Serious attack on a group.

Harassment and bullying

Harassing an individual (including doxing)

Harmful activities

Threatening or glorifying violence or serious harm, including self-harm

Adult content (Consensual)

Nudity/Sexual content

Sexual exploitation and abuse (child safety)

Sexually explicit or suggestive imagery or writing involving minors

Sexual exploitation and abuse (adults and animals)

Sexually explicit or suggestive imagery or writing involving non-consenting adults or non-humans

Plagiarism

Reusing content without attribution (link and blockquotes)

Poorly written

Not in English or has very bad formatting, grammar, and spelling

Inappropriate credential

Author's credential is offensive, spam, or impersonation

Other

Ex. Illegal content, incomplete question...

ABA CTFA Practice Test 20

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