CTFA Exam Questions

_____________ offers the latest-model used cars, provide financing, and will negotiation on price. Be sure to research values for shipping.

__________ have great impact on bond prices.

Bond interest rate is called:

Bonds usually pay interest _________ per year.

Coupon rate is paid until the bond ____________.

Bond's par value is known as __________ value.

Time consumed in clearing a check through the banking system.

Commercial paper is essentially:

Concentration banking:

Which would be an appropriate investment for temporarily idle cash that will be used to pay quarterly dividends three months from now?

According to the Bond Equivalent Yield (BEY) method, the yield on a $1,000, 13-week US Treasury bill purchased for $960 would be closest to .

Accounts receivable conversion (a.k.a., check conversion) is the conversion of a paper check to

It is a type of flexible mortgage where the payments increase for a specified period of time and then level off. What is it?

___________ is a claim upon a piece of property for the payment or satisfaction of a debt or obligation.

First mortgage is:

A document that gives evidence of an individual's ownership of a property.

The mortgage interest rate will remain the same on these mortgages throughout the term of the mortgage.

_____________ is the money paid to insure the mortgage when the down payment is less than 20 percent

What can be a short term interim loan to pay for the construction of buildings and homes?

The amount of debt, not counting interest, on a loan.

Money given by a buyer to a seller, as part of the purchase price to bind a transaction or assure payment.

A legal by which a lender or a seller forces a sale of a mortgaged property.

A construction loan made during completion of a building or a project.

A mortgage which is in first lien position, taking priority over all other liens.

__________ refers to failure to meet legal obligations in a contract, specifically, failure to make the monthly payments on the mortgage.

The difference between fair market value and current indebtedness is called:

An account held by the lender into which the home buyer pays money for tax or insurance payments.

It is a document that gives evidence of an individual's ownership of property. What is it?

Mutual funds let you invest_________.

The fund's investment objective can be found in:

Large- value funds own__________.

___________ specializes in low cost index funds.

Small-value funds own__________:

Loan funds_________:

Dollar cost averaging __________:

Large growth funds own:

Small growth funds own_______:

Which turnover rate suggests a more tax efficient funds?

A typical mutual fund doesn't generally:

The number of mutual funds is:

Bond funds offer_________:

Mutual funds make you money through:

The 12b-1 fee covers_____________:

A________ is the time to pay your credit card bill without incurring finance charges.

An informal term for credit card is:

The total amount that you have to pay on a certain billing is:

____________ is the term used for the monthly report of all the accumulated charges.

It occurs when you don't make full payment on your previous bill.

The least amount of money that you should pay on or before your due date is called:

You can earn a ___________ when you continuously use your credit card for purchasing stuff.