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CTFA PRACTICE EXAM 2 QUESTIONS & ANSWERS VERIFIED 100% CORRECT!!
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CTFA PRACTICE EXAM 2 QUESTIONS & ANSWERS VERIFIED 100% CORRECT!!
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CTFA PRACTICE EXAM2 QUESTIONS &
ANSWERS VERIFIED
100% CORRECT!!
CTFA
Evatee 10/3/24 CTFA
,CTFA PRACTICE EXAM 2 QUESTIONS &
ANSWERS VERIFIED 100% CORRECT!!
Q. Which of the following describes the regulatory requirements imposed on
an investment management company with regard to mutual funds?
A. At least ten percent of the directors of the mutual fund must be non-
interested persons of the fund
B. The investment management company must provide custodianship of the
fund's assets
C. The management company's investment advisor must be SEC-registered
D. The fund is required to appoint a federal government official who is
responsible for written policies and procedures that are designed to prevent
violations of federal laws Answer - Solution: The correct answer is C.
Q. Your client, Mrs. Greene, is a 79-year-old widow who lives at home with
assistance from 24-hour caregivers. All her assets are held by an irrevocable
trust. Your institution is trustee. Mrs. Greene is represented by an attorney who
is her agent under a springing durable financial power of attorney. A review of
her petty cash accounts, accessed by her caregivers, reveals areas of possible
theft. You visit Mrs. Greene and discover physical signs of abuse and inability to
focus on your conversation. You should immediately:
A. Dismiss all caregivers to limit liability
B. Contact her doctor to arrange an evaluation
C. Contact her attorney to report your observations
D. Remove Mrs. Green from the home and arrange for her to be admitted to a
long-term care facility Answer - Solution: The correct answer is C.
, Q. All of the following have a bearing on the company contribution portion in a
pension plan EXCEPT:
A. Rate of return.
B. Forfeitures.
C. Mortality.
D. Employee contributions. Answer - Solution: The correct answer is D.
Q. A client sustained a total loss to their house in a fire. The client paid
$150,000 to construct the house 10 years ago. Today, the house would cost
$350,000 to construct. At the time of the fire, the fair market value of the
structure was $500,000 and the tax assessed value was $400,000. What
amount will be paid to replace the structure by a homeowner's policy with full
coverage?
A. $150,000
B. $350,000
C. $400,000
D. $500,000 Answer - Solution: The correct answer is B.
Q. If a client owns 250 shares of a stock that declares a 2-for-1 stock split, how
many shares will the client own after the split is completed?
A. 375
B. 400
C. 500
D. 750 Answer - Solution: The correct answer is C.
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