ExamGecko

ABA CTFA Practice Test - Questions Answers, Page 13

Question list
Search
Search

Question 121

Report
Export
Collapse

When the market's required rate of return for a particular bond is much less than its coupon rate, the bond is selling at:

A.
A premium
A.
A premium
Answers
B.
A discount
B.
A discount
Answers
C.
cannot be determined without more information
C.
cannot be determined without more information
Answers
D.
Face value
D.
Face value
Answers
Suggested answer: A
asked 16/09/2024
Dave Stacey
31 questions

Question 122

Report
Export
Collapse

Virgo Airlines will pay a $4 dividend next year on its common stock, which is currently selling at $100 per share. What is the market's required return on this investment if the dividend is expected to grow at 5% forever?

A.
4 Percent
A.
4 Percent
Answers
B.
5 Percent
B.
5 Percent
Answers
C.
7 Percent
C.
7 Percent
Answers
D.
9 Percent
D.
9 Percent
Answers
Suggested answer: D
asked 16/09/2024
Rajesh Tripathy
31 questions

Question 123

Report
Export
Collapse

Interest rates and bond prices:

A.
Move in the same direction
A.
Move in the same direction
Answers
B.
Move in opposite directions
B.
Move in opposite directions
Answers
C.
Sometimes move in the same direction, sometimes in opposite directions
C.
Sometimes move in the same direction, sometimes in opposite directions
Answers
D.
Have no relationship with each other (i.e., they are independent)
D.
Have no relationship with each other (i.e., they are independent)
Answers
Suggested answer: B
asked 16/09/2024
Bahman Talachian
27 questions

Question 124

Report
Export
Collapse

The expected rate of return on a bond if bought at its current market price and held to maturity.

A.
Yield to maturity
A.
Yield to maturity
Answers
B.
Current yield
B.
Current yield
Answers
C.
Coupon Yield
C.
Coupon Yield
Answers
D.
Capital gains yield
D.
Capital gains yield
Answers
Suggested answer: A
asked 16/09/2024
Minoel Prendi
31 questions

Question 125

Report
Export
Collapse

Two people wishing to open a checking account may do so in which one of the following ways:

A.
They can each open individual checking accounts (on which the other cannot write checks)
A.
They can each open individual checking accounts (on which the other cannot write checks)
Answers
B.
They can open a joint account that requires both signatures on all checks
B.
They can open a joint account that requires both signatures on all checks
Answers
C.
They can open joint account that allows either one to write checks (the most common type of joint account)
C.
They can open joint account that allows either one to write checks (the most common type of joint account)
Answers
D.
All of the above
D.
All of the above
Answers
Suggested answer: D
asked 16/09/2024
Lara Umemoto
49 questions

Question 126

Report
Export
Collapse

After opening the checking account, follow these basic procedures Except:

A.
Always right checks in ink
A.
Always right checks in ink
Answers
B.
Include the name of the person being paid the date, and the amount of the check
B.
Include the name of the person being paid the date, and the amount of the check
Answers
C.
Note the check's purpose on the check
C.
Note the check's purpose on the check
Answers
D.
Sign the check in a different way than on the signature card
D.
Sign the check in a different way than on the signature card
Answers
Suggested answer: D
asked 16/09/2024
Hector Moreno
40 questions

Question 127

Report
Export
Collapse

______________ is the result writing a check for an amount greater than the current account balance.

A.
Overdrafts
A.
Overdrafts
Answers
B.
Undercrofts
B.
Undercrofts
Answers
C.
Checkbook ledger
C.
Checkbook ledger
Answers
D.
Overdraft protection
D.
Overdraft protection
Answers
Suggested answer: A
asked 16/09/2024
Sterling White
47 questions

Question 128

Report
Export
Collapse

It is a booklet provided with a supply of checks, used to maintain accurate records of all checking account transactions.

A.
Overdrafts
A.
Overdrafts
Answers
B.
Undercrofts
B.
Undercrofts
Answers
C.
Checkbook ledger
C.
Checkbook ledger
Answers
D.
Overdraft protection
D.
Overdraft protection
Answers
Suggested answer: C
asked 16/09/2024
Tim Klein
37 questions

Question 129

Report
Export
Collapse

An arrangement between the account holder and the depository institution wherein the institution automatically pays a check that overdraws the account is called:

A.
Overdrafts
A.
Overdrafts
Answers
B.
Undercrofts
B.
Undercrofts
Answers
C.
Checkbook ledger
C.
Checkbook ledger
Answers
D.
Overdraft protection
D.
Overdraft protection
Answers
Suggested answer: D
asked 16/09/2024
Anna Pytka
32 questions

Question 130

Report
Export
Collapse

Diversification__________:

A.
Allows you to profit in any market
A.
Allows you to profit in any market
Answers
B.
Is a way to reduce volatility of your investments
B.
Is a way to reduce volatility of your investments
Answers
C.
Is the only way to profit in the long run
C.
Is the only way to profit in the long run
Answers
D.
Requires investing in hundreds of funds
D.
Requires investing in hundreds of funds
Answers
Suggested answer: B
asked 16/09/2024
AHOPkos Varga
29 questions
Total 895 questions
Go to page: of 90