Question 1

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 : Negative amortization

B : Positive amortization

C : Amortization imbalance

D : Payment gap

Answer: A

Question 2

If a mutual fund has an NAV of $100 million, and investors own $10,000,000 of fund’s shares,the funds per share value will be:

Options :

A : $100

B : $1

C : $10

D : None of these

Answer: C

Question 3

They say it pays to shop around and when it comes to credit cards that are certainly true. Regardless of which category they fall into, there are basically four credit card features to look for. Which of the following is/are out of those features?

Options :

A : Annual fees

B : Rate of interest charged on account balance

C : Length of the expiration period

D : Method of calculating balances

Answer: C

Question 4

In _________________, an adjustment is based on experience of an individual risk during the term of the policy and is generally subject to maximum and minimum premium limits specified in the policy.

Options :

A : Business recordkeeping

B : Retrospective premium adjustments

C : Premium transaction flow

D : Adjusting premiums

Answer: B

Question 5

Short-term portfolios are:

Options :

A : Portfolios consisting of liabilities with maturities of one year to meet dollar needs.

B : Portfolios consisting of combined revenues of less than one year to meet liquidity needs.

C : Portfolios consisting of assets with maturities of less than one year to meet liquidity needs.

D :

Portfolios consisting of expenses with maturities of less than or equal to one year to meet dollar needs.

Answer: C

Smartly Prepare Exam with Free Online CTFA Practice Test

Buying Options: