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ABA CTFA Practice Test - Questions Answers, Page 42

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It is an automobile insurance that reimburses the parties involved in an accident without regard to negligence.

A.
No-fault automobile insurance
A.
No-fault automobile insurance
Answers
B.
Comprehensive automobile insurance
B.
Comprehensive automobile insurance
Answers
C.
Collision insurance
C.
Collision insurance
Answers
D.
Automobile accidental damage coverage
D.
Automobile accidental damage coverage
Answers
Suggested answer: A

An insurance policy providing excess liability coverage for homeowner's and automobile insurance as well as additional coverage not provided by either policy is referred as:

A.
Personal liability umbrella policy
A.
Personal liability umbrella policy
Answers
B.
Captive agent
B.
Captive agent
Answers
C.
Independent agent
C.
Independent agent
Answers
D.
Claims adjuster
D.
Claims adjuster
Answers
Suggested answer: A

What can be the possible strategy to avoid liability?

A.
Understand what causes liability
A.
Understand what causes liability
Answers
B.
Develop you own safety program
B.
Develop you own safety program
Answers
C.
Carry adequate liability insurance
C.
Carry adequate liability insurance
Answers
D.
None of these
D.
None of these
Answers
Suggested answer: A, B, C

_____________ is an insurance specialist who works for the insurance company as an independent adjustor or for an adjustment bureau, to investigate claims.

A.
Personal liability umbrella
A.
Personal liability umbrella
Answers
B.
Captive agent
B.
Captive agent
Answers
C.
Independent agent
C.
Independent agent
Answers
D.
Claims adjuster
D.
Claims adjuster
Answers
Suggested answer: A

What is that form of investing in which future value and expected returns are highly uncertain?

A.
Hedging
A.
Hedging
Answers
B.
Speculating
B.
Speculating
Answers
C.
Short-term investment
C.
Short-term investment
Answers
D.
Long-term investment
D.
Long-term investment
Answers
Suggested answer: A, B

__________ is a statement, preferably written, that specifies how investment capital will be invested to achieve a specific goal.

A.
Investment Line
A.
Investment Line
Answers
B.
Investment plan
B.
Investment plan
Answers
C.
Investment direction
C.
Investment direction
Answers
D.
Investment goal
D.
Investment goal
Answers
Suggested answer: B

People often put money aside, sometimes for years, to save up enough to make just one major expenditure. Here are some common ones. Which of the following is Not out of those expenditures.:

A.
The down payment on a home
A.
The down payment on a home
Answers
B.
An regular vacation
B.
An regular vacation
Answers
C.
Some capital for going into business
C.
Some capital for going into business
Answers
D.
Funds for retirement
D.
Funds for retirement
Answers
Suggested answer: B

Securities market is a market place in which stocks, bonds, and other financial instruments are traded. Such markets can be:

A.
Physical businesses
A.
Physical businesses
Answers
B.
Electronic businesses
B.
Electronic businesses
Answers
C.
Having outstanding securities
C.
Having outstanding securities
Answers
D.
All of these
D.
All of these
Answers
Suggested answer: D

A document made available to prospective security buyers that describes the firm and a new security issue. ___________ are responsible for ensuring that all the information in the prospectus accurately represents the facts.

A.
Federal agencies
A.
Federal agencies
Answers
B.
Private parties
B.
Private parties
Answers
C.
Local governments
C.
Local governments
Answers
D.
State government
D.
State government
Answers
Suggested answer: A

Which of the following is least likely to be considered a short-term marketable security?

A.
An original issue 30-year corporate bond with one-year remaining until final maturity
A.
An original issue 30-year corporate bond with one-year remaining until final maturity
Answers
B.
An original issue 30-year government bond with one-year remaining until final maturity
B.
An original issue 30-year government bond with one-year remaining until final maturity
Answers
C.
A 90-day Treasury bill
C.
A 90-day Treasury bill
Answers
D.
Short-term corporate debt instruments with a 9-month original maturity
D.
Short-term corporate debt instruments with a 9-month original maturity
Answers
Suggested answer: A
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