ABA CTFA Practice Test - Questions Answers, Page 20
List of questions
Question 191

In credit card payments , late payment charges occur when you only pay the minimum payment.
True
False
It depends
There are no such charges
Suggested answer: B
Question 192

Dealer invoice is the amount a dealer is billed by the car manufacturer.
True
False
It depends
There is no such invoice
Suggested answer: A
Question 193

APR is the same as the interest rate.
True
False
It depends
APR is not comparable with interest rate
Suggested answer: B
Question 194

Dealer holdback is an allowance:
That manufacturer gives to the buyer
That supplier gives to the buyer
That wholesaler gives to the buyer
None of these
Suggested answer: D
Question 195

Dealer charges include:
Manufacturer warranty
Retailer warranty
Producer warranty
None of these
Suggested answer: D
Question 196

APR stands for:
Average postal rate
Annual percentage rate
Average prudential rate
Average percentage rate
Suggested answer: B
Question 197

Dealer charges include extras such as extended warranty.
False
True
There are no such charges
Sometimes it includes, sometimes not
Suggested answer: B
Question 198

In stocks, technical analysis is based on studying:
P/E
EPS trends
Stock fundamentals
Stock Charts
Suggested answer: D
Question 199

Socks that tends to periodically rise and fall are called:
Defensive stocks
Blue chips
Cyclic stocks
Income stocks
Suggested answer: C
Question 200

High price earnings ratio often indicate that investors:
Are avoiding the company stock
Are optimistic about the company
Like the company products
Don' t worry about the inflation
Suggested answer: B
Question