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

Last updated on June 20, 2026

97% Exam Compliance
894 Total Questions
1
Question
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?
Options
A Amortization imbalance
B Positive amortization
C Negative amortization
D Payment gap
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2
Question
To say that there is "asymmetric information" in the issuing of common stock or debt means that:
Options
A Management has more accurate information than investors have
B The markets have nearly perfect information
C Investors have nearly perfect information
D Investors have more accurate information than management has
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3
Question
Asset and liability management is:
Options
A An approach of specific assets and liabilities in a financial statement that requires correct mix of long and short term revenues.
B An approach of mix assets and liabilities in a financial statement that requires specific long and short term revenues.
C An approach of matching assets and liabilities that requires a correct mix of long and short term investments.
D An approach of mix assets and liabilities in a financial statement that requires specific long and short term revenues.
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4
Question
In an NPV sensitivity graph, a steep sensitivity line for a particular input variable means that a in that variable results in a in NPV.
Options
A Small percentage change; small change
B Large percentage change; small change
C Small percentage change; large change
D Large percentage change; large change
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5
Question
Many health insurance plans omit or offer only reduced benefits for treatment of mental disorders.
For example, a health insurance policy may offer hospitalization benefits that continue to pay as long
as you are hospitalized except for mental illness. It may restrict payment for mental illness to one- half of the normally provided payment amounts and for a period not to exceed:
Options
A 25 days
B 20 days
C 15 days
D 30 days
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