CTFA

CTFA practice questions, page 14 of 35, with answer review and explanations.

Question 66

________________ pools the funds f many small investors to purchase high return, short term marketable securities offered by the U. S treasury.

  1. Money market deposit accounts
  2. Money market mutual funds
  3. Time deposit
  4. Asset management account

Question 67

It is a formal, legal commitment to extend credit up to some maximum amount over a stated period of time.

  1. Letter of credit
  2. Revolving credit agreement
  3. Line of credit
  4. Trade credit

Question 68

The type(s) of collateral generally used for a secured short-term loan is(are):

  1. Inventory and/or receivables
  2. Common Stocks and bonds
  3. Real estate
  4. Machinery

Question 69

The investment proposal with the greatest relative risk would have:

  1. The highest standard deviation of net present value
  2. The highest coefficient of variation of net present value
  3. The highest expected value of net present value
  4. The lowest opportunity loss likelihood

Question 70

A safe-deposit box is a rented drawer in a bank's vault. Boxes can be rented for:

  1. $40
  2. $30
  3. $40-$85
  4. $90