Free CTFA – Certified Trust and Financial Advisor Practice Test Question

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• ○

  Far more than a salesperson

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  Mostly interested in his own commission

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  May not be socially known

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  Can trade your stock without your permission
  
  

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  Failing to act in a reasonable manner

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  Failing to take necessary steps to protect others from harm

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  Causing a loss

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  Losing the judgment
  
  

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  Any losses from this portfolio are allowable for Capital Gains Tax calculations

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  Her entire portfolio will be subject to a 10% tax credit

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  Only the proceeds of sale from the OEICs could be subject to Capital Gains Tax

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  The taxation of dividends on the OEICs held will be treated the same way as the unit trusts

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  She can never reclaim any tax deducted at source
  
  

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  The asset mix of the fund will be adjusted automatically on pre-determined dates

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  His ongoing exposure to equities will reduce with lifestyling

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  After 10 years, a maximum of 25% of the investments will be in bonds

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  Lifestyling is likely to be appropriate if he intends to purchase a conventional annuity with his entire fund.
  
  

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• ○

  Age of the house

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  Location

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  Material used in construction

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  A and B Only
  
  

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  Protection from debtors

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  Financial protection from dependents

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  Vehicle for savings

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  Interest benefit
  
  

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  It’s very costly

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  It does little more than give lenders a lucrative source of income

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  It increases market interest charges

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  It increases inflation
  
  

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• ○

  The persons and places covered

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  Cancellation

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  Re-existing conditions

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  Rehabilitation coverage
  
  

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  It indicates the percentage return above/below the risk-free rate for each unit of risk taken

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  It will always be quoted on a rolling quarterly basis

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  A positive Sharpe ratio will always guarantee positive returns

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  The higher the number, the more a portfolio manager can be said to have added value
  
  

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  Made for a specified period

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  At the end of which payment is due in full

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  At the end of which half of the payment is due

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  That expires within a year
  
  

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  $12,000

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  $19,200

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  $20,000
  

• ○

  $24,000
  
  

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  Estimating corporate sales

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  Estimating corporate earnings before taxes

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  Estimating corporate liabilities and assets

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  Estimating corporate earnings after taxes

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• ○

  Maturity

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  Coupon

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  Yield to maturity

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  All of the given options
  
  

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  One year (But no more)

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  Two years (but no more)

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  Ten years (but no more)

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  Thirty years (or more)
  
  

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• ○

  Credit

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  Interest

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  Reward

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  Punishment
  
  

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  Cashier’s check

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  Traveler’s check

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  Certified check

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  None of these
  
  

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  Pertaining to the retention, purchase and sale of assets

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  Those pertaining to distributions of principal

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  Those pertaining to make dealings

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  None of these
  
  

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• ○

  the financial position of an entity with a 2-to-1 reserve-to-surplus ratio is less affected by variability in its loss reserves than is an entity operating at 4-to-1 ratio.

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  the financial position of an entity with a 2-to-1 reserve-to-surplus ratio is more affected by variability in its loss reserves than is an entity operating at 4-to-1 ratio.

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  the financial position of an entity with a 4-to-1 reserve-to-surplus ratio is less affected by variability in its loss reserves than is an entity operating at 2-to-1 ratio.

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  the financial position of an entity with a 4-to-1 reserve-to-surplus ratio is more affected by variability in its loss reserves than is an entity operating at 2-to-1 ratio.
  
  

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• ○

  Probability distribution

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  The expected return

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  The standard deviation

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  Co-efficient of variation
  
  

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• ○

  Evaluating the portfolio’s performance

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  Updating the portfolio based on changes

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  Examining current and projected financial goals

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  A and B both