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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.

Deposit Insurance
Deposit Insurance
Demand deposit
Demand deposit
Time deposit
Time deposit
Money market mutual fund
Money market mutual fund
Suggested answer: A
asked 16/09/2024
Shivanth Jha
34 questions

Question 2

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A checking account on which the financial institution pays interest; it have no legal minimum balance is called:

Money market deposit account
Money market deposit account
Negotiable order of withdrawal account
Negotiable order of withdrawal account
Money market mutual funds
Money market mutual funds
Asset management account
Asset management account
Suggested answer: B
asked 16/09/2024
tirou RANGA
34 questions

Question 3

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A company can ensure the complete success of a rights offering by making use of a:

Standby arrangement
Standby arrangement
Oversubscription privilege
Oversubscription privilege
Green shoe provision
Green shoe provision
Shelf registration
Shelf registration
Suggested answer: A
asked 16/09/2024
Nivi Kolatte
39 questions

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:

$0.96
$0.96
$1.20
$1.20
$1.5
$1.5
$6.0
$6.0
Suggested answer: B
asked 16/09/2024
Daniela Const
38 questions

Question 5

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Financial intermediaries :

Do not invest in new long-term securities
Do not invest in new long-term securities
Include insurance companies and pension funds
Include insurance companies and pension funds
Include the national and regional stock exchanges
Include the national and regional stock exchanges
Are usually underwriting syndicates
Are usually underwriting syndicates
Suggested answer: B
asked 16/09/2024
Lars Bleckmann
41 questions

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:

$2674
$2674
$2890
$2890
$3741
$3741
$4020
$4020
Suggested answer: C
asked 16/09/2024
Wai Kiat Wong
34 questions

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.

Rule 415
Rule 415
the Rule of 72
the Rule of 72
the Rule of 78
the Rule of 78
Rule 144
Rule 144
Suggested answer: B
asked 16/09/2024
Jerry Manalo
32 questions

Question 8

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Loan disclosure statement is:

A document which lenders are required to supply borrowers
A document which lenders are required to supply borrowers
That states the dollar amount of finance charges
That states the dollar amount of finance charges
That states APR applicable to a loan
That states APR applicable to a loan
All of these
All of these
Suggested answer: D
asked 16/09/2024
Amanda Ferrucho
26 questions

Question 9

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In a typical loan amortization schedule, the dollar amount of interest paid each period.

Increases with each payment
Increases with each payment
Decreases with each payment
Decreases with each payment
Remains constant with each payment
Remains constant with each payment
Any one of these can be the case
Any one of these can be the case
Suggested answer: B
asked 16/09/2024
Angel Luis Cuenca Garcia
33 questions

Question 10

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When n = 1, this interest factor equals one for any positive rate of interest.

PVIF
PVIF
FVIF
FVIF
PVIFA
PVIFA
FVIFA
FVIFA
Suggested answer: D
asked 16/09/2024
Peter Jennings
34 questions
Total 895 questions
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