ABA CTFA Practice Test - Questions Answers
List of questions
Question 1
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___________ is a type of insurance that protects funds on deposit against failure of the institution; can be insured by the FDIC and the NCUA.
Question 2
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A checking account on which the financial institution pays interest; it have no legal minimum balance is called:
Question 3
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A company can ensure the complete success of a rights offering by making use of a:
Question 4
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The market price of K-T-Lew Corporation's common stock is $60 per share, and each share gives its owner one subscription right. Four rights are required to purchase an additional share of common stock at the subscription price of $54 per share. If the common stock is currently selling 'rights-on,' the theoretical value of a right is closest to:
Question 5
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Financial intermediaries :
Question 6
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You are considering borrowing $10,000 for 3 years at an annual interest rate of 6%. The loan agreement calls for 3 equal payments, to be paid at the end of each of the next 3 years. (Payments include both principal and interest.) The annual payment that will fully pay off (amortize) the loan is closest to:
Question 7
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You can use to roughly estimate how many years a given sum of money must earn at a given compound annual interest rate in order to double that initial amount.
Question 8
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Loan disclosure statement is:
Question 9
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In a typical loan amortization schedule, the dollar amount of interest paid each period.
Question 10
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When n = 1, this interest factor equals one for any positive rate of interest.
Question