CTFA

CTFA practice questions, page 24 of 35, with answer review and explanations.

Question 116

After opening the checking account, follow these basic procedures Except:

  1. Always right checks in ink
  2. Include the name of the person being paid the date, and the amount of the check
  3. Note the check's purpose on the check
  4. Sign the check in a different way than on the signature card

Question 117

______________ is the result writing a check for an amount greater than the current account balance.

  1. Overdrafts
  2. Undercrofts
  3. Checkbook ledger
  4. Overdraft protection

Question 118

It is a booklet provided with a supply of checks, used to maintain accurate records of all checking account transactions.

  1. Overdrafts
  2. Undercrofts
  3. Checkbook ledger
  4. Overdraft protection

Question 119

An arrangement between the account holder and the depository institution wherein the institution automatically pays a check that overdraws the account is called:

  1. Overdrafts
  2. Undercrofts
  3. Checkbook ledger
  4. Overdraft protection

Question 120

Diversification__________:

  1. Allows you to profit in any market
  2. Is a way to reduce volatility of your investments
  3. Is the only way to profit in the long run
  4. Requires investing in hundreds of funds