CTFA Exam Questions

A way to analyze whether debt or lease financing would be preferable is to:

A conventional revolving credit agreement allows:

The type of lease that includes a third party, a lender, is called a(n):

One advantage of a financial lease is that:

Medium-term notes (MTNs) have maturities that range up to:

A direct lease, a sale and leaseback, and a leveraged lease are all examples of:

One of the components of monthly mortgage insurance is homeowner's insurance. Its cost varies with factor/s as:

Sale of real estate property in which the proceeds are less than the balance owed on loan secured by property sold.

Real estate commissions generally range _______ for new homes and ________ for previously occupied homes or resales. It may be possible to negotiate a lower decision with your brok...

It is the process of arranging with a mortgage lender, in advance of buying a home, to obtain the amount of mortgage financing the lender deems affordable to home buyer.

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

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

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...

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

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:

Contingency clause:

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...

Money market mutual funds:

The purpose of financial markets is to:

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

How are funds allocated efficiently in a market economy?

Assume that a "temporary" additional (US federal tax related) first-year bonus depreciation of 50 percent applies to a new, $100,000 piece of equipment purchased by Bellemans Choco...

_______ is a mortgage with a single large principal payment due at a specified future date.

Margin on an adjustable rate mortgage is the percentage point a lender adds to the index rate to determine the rate of interest. It is important for home buyers to understand all o...

It occurs when a principal balance on a mortgage loan increases because the monthly loan payment is lower than the amount of monthly interest being charged. What is it?

Two-step ARM is an adjustable rate mortgage with just two interest rates. One for the first ________ years of the loan and the higher one for the remaining term of the loan:

Fixed rate mortgages are popular with home buyers who plan to stay in their homes for at least ________ years and want to know what their payment will be.

It is a loan that allows a lender or other party to share in the appreciated value when the home is sold.

It is the mortgage that requires the borrower to pay only interest; typically used to finance the purchase of more expensive properties.

It is the mortgage that starts with unusually low payments that rise over several years to a fixed payment.

If an investment banker has agreed to sell a new issue of securities on a best-efforts basis, the issue:

In mortgage loans closing costs are made up of all of the following Except:

A preliminary prospectus is known as a:

Letter stock is:

The actual market value of a right will differ from its theoretical value for all of the following reasons Except for:

When the investment banker bears the risk of not being able to sell a new security at the established price, this is known as:

To say that there is "asymmetric information" in the issuing of common stock or debt means that:

A best efforts offering is sometimes used in connection with a of new, long-term securities.

_____________ is a financing made available by a builder or a seller to a potential new home buyer at well below market interest rate, often only for a short period, is called:

A loan on which payments equal to half the regular monthly payments is called:

It is a guarantee offered by the U.S Veterans Administration to lenders who make qualified mortgage loans t eligible veterans of the U.S. Armed Forces and their unmarried surviving...

People typically use credit as a way to pay for goods and services that cost more than they can afford to take from their current income. Whatever their age group, people tend to b...

One can avoid the possibility of future repayment socks by keeping in mind the some types of transactions for which you should not generally use credit. Which of the following is N...

Lenders often look the 5 C's of credit as a way to assess the willingness and ability of a borrower to repay a loan. Those 5 C's are all of the following Except:

Sound financial planning dictates that you need a good idea of how much credit you can comfortably tolerate. One can do some measures to build a strong credit history. Which of the...

Consider someone who takes home $2500 a month. Using a 20% ratio, he/she should have monthly consumer credit payments of no more than $500 i.e., $2500*0.20= $500. This is the _____...

Cash advance is:

A short period of time, usually 20 to 30 days, during which you can pay your credit card bill in full and not incur any interest charges, is:

It is a bank credit card that combines features of a traditional bank credit card with an additional incentive, such as rebates and air mileage.

About half of the credit cards are rebate cards, and new cards are introduced every day. In one credit card incentive program card holder earn free frequent flyer miles for each do...