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Certified Trust and Financial Advisor (CTFA) (CTFA) - American Bankers Association Actual Exam Questions

Last updated on April 11, 2026

97% Exam Compliance
894 Total Questions
1
Question

It is a line of credit made available to an individual on an as-needed basis.

Options
A

Home equity credit line

B

Overdraft protection line

C

Revolving line of credit

D

Unsecured personal credit line

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2
Question

Which of the following ratios will be used if portfolio’s numerous other assets systematic risk of investment is the best?

Options
A

Treynor reward-to-volatility rati

B

Jensen's differential return ratio

C

Jennet’s return on liquidity ratio

D

Sharpe reward-to-variability rati

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3
Question

Which of the following is a basket of shares brought for you by an asset management company?

Options
A

Hedge fund

B

Managed fund

C

Adaptation fund

D

Mutual fund

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4
Question

Contingency clause:

Options
A

Is the clause in a real estate sales contract that makes the agreement conditional on such factors as the availability of financing, property inspections, or obtaining expert advice

B

Is the clause in a real estate purchase contract that makes the agreement conditional on such factors as the availability of financing, property inspections, or obtaining expert advice

C

Is the clause in a automobile sales contract that makes the agreement conditional on such factors as the availability of financing, property inspections, or obtaining expert advice

D

Is the clause in a prequalification that makes the agreement conditional on such factors as the availability of financing, property inspections, or obtaining expert advice

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5
Question

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

Options
A

Interim Financing

B

First mortgage

C

Conventional loan

D

Blanket Mortgage

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