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Free CTFA – Certified Trust and Financial Advisor Practice Test Question

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Showing 16–18 of 20 questions

Question 16

It is a check payable to a third party that is drawn by a bank on itself in exchange for the amount specified plus, in most cases, a service fee (of about $5).

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  • ○

    Cashier’s check
  • ○

    Traveler’s check
  • ○

    Certified check
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    None of these
Question 17

Which one of the following is not commonly granted trustee’s powers?

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  • ○

    Pertaining to the retention, purchase and sale of assets
  • ○

    Those pertaining to distributions of principal
  • ○

    Those pertaining to make dealings
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    None of these
Question 18

Which of the following is Correct?

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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.
  • ○

    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.
  • ○

    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.
  • ○

    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.