Free American Bankers Association CTFA Exam Actual Questions

The questions for CTFA were last updated On Apr 27, 2025

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Question No. 1

Need analysis method is a more detailed approach than multiple-of-earnings method. This method considers both financial obligations and financial resources of the insured and his or her dependents. Which of the following steps is/are involved in this method?

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Correct Answer: D

Question No. 2

Capital appreciation is an appropriate objective when the investors want the portfolio to grow in real terms over time to meet some future need. Under this strategy, growth mainly occurs through capital gains. This is an

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Correct Answer: C

Question No. 3

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 below mentioned points can be out of those measure?

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Correct Answer: A, B

Question No. 4

Pauline, a basic-rate taxpayer, has a portfolio which comprises of various equity and fixed-interest unit trusts and OEICs. She should be aware that:

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Correct Answer: A, D

Question No. 5

The presence of managerial, or real, options the worth of an investment project.

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Correct Answer: A