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ABA CTFA Practice Test - Questions Answers, Page 26

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List of questions

Question 251

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Prequalification provides estimates of required down payment and closing costs of different types of mortgages. It identifies in advance any problems such as:

Question 252

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Michael Cohn is a 'member' (a type of owner) of a marine supply business. Michael's business is:

Question 253

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The Counting House, Inc., purchased 5-year property class equipment for $60,000. It uses the MACRS method of depreciation. What is tax depreciation for the second year of the asset's life?

Question 254

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A 30-year bond issued by Gary's Plaid Pants Warehouse, Inc., in 1997 would now trade in the:

Question 255

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A corporation in which you are a shareholder has just gone bankrupt. Its liabilities are far in excess of its assets. You will be called on to pay:

Question 256

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Contingency clause:

Question 257

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A federal law requiring mortgage lenders to give potential borrowers a government publication describing the closing process and providing clear, advance disclosure of all closing costs to home buye

Question 258

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Money market mutual funds:

Question 259

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The purpose of financial markets is to:

Question 260

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Which of the following is NOT an example of a financial intermediary?

Question 251

Prequalification provides estimates of required down payment and closing costs of different types of mortgages. It identifies in advance any problems such as:

Credit report errors

Bargaining power with the seller of a house

Mortgage loans

Earnest money deposit

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Question 252

Michael Cohn is a 'member' (a type of owner) of a marine supply business. Michael's business is:

A sole proprietorship

A corporation

A limited liability company

A general partnership

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Question 253

The Counting House, Inc., purchased 5-year property class equipment for $60,000. It uses the MACRS method of depreciation. What is tax depreciation for the second year of the asset's life?

$12,000

$19,200

$20,000

$24,000

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Question 254

A 30-year bond issued by Gary's Plaid Pants Warehouse, Inc., in 1997 would now trade in the:

Primary money market

Secondary money market

Primary capital market

Secondary capital market

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Question 255

A corporation in which you are a shareholder has just gone bankrupt. Its liabilities are far in excess of its assets. You will be called on to pay:

A proportionate share of bondholder claims based on the number of common shares that you own.

A proportional share of all creditor claims based on the number of common shares that you own.

An amount that could, at most, equal what you originally paid for the shares of common stock in the corporation.

None of these

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Question 256

Contingency clause:

Is the clause in a real estate sales contract that makes the agreement conditional on such factors as the availability of financing, property inspections, or obtaining expert advice

Is the clause in a real estate purchase contract that makes the agreement conditional on such factors as the availability of financing, property inspections, or obtaining expert advice

Is the clause in a automobile sales contract that makes the agreement conditional on such factors as the availability of financing, property inspections, or obtaining expert advice

Is the clause in a prequalification that makes the agreement conditional on such factors as the availability of financing, property inspections, or obtaining expert advice

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A federal law requiring mortgage lenders to give potential borrowers a government publication describing the closing process and providing clear, advance disclosure of all closing costs to home buyers is called:

Multiple listing service

Real Estate settlement procedure Act

Title check

Closing statement

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