CTFA Online Practice Questions and Answers

A measure of "risk per unit of expected return."

A. Standard deviation

B. Coefficient of variation

C. Correlation coefficient

D. Beta

Short-term interest rates generally fluctuate ______ long-term rates, so it pays to monitor interest rate movements, shop around for the best rates, and place your funds in savings vehicles consistent with your needs.

A. More than

B. Less than

C. Equal to

D. None of the above

Credit cards offer ________ so you can withdraw money instantly.

A. Cash reward

B. Credit cash

C. Mortgage

D. Cash advance

What uses valuation techniques to convert future amounts to a single present amount?

A. Risk approach

B. Market approach

C. Income approach

D. Cost approach

Technical Analysis method that tries to pinpoint when a security's shares are being accumulated (being bought) or are being sold is known as.

A. Relative strength index

B. On Balance Volume

C. Moving average

D. None of the above

Which of the following charts give the economic information on weekly or yearly basis?

A. Line charts

B. Bar charts

C. Pie charts

D. Symbol charts

If the Dow Johns industrial average stock splits 3 for 1 then what impact will this have on the index divisor?

A. Index divisor will incline

B. Index divisor remains constant

C. Index divisor will decline

D. Index divisor multiply

Which of the following is the theories searching the pattern in the randomness?

A. Elliott theory

B. Chaos theory

C. Portfolio theory

D. Valuation theory

Changes in existing policies that may result in additional premiums or return premiums, such as increases or decreases in coverage limits, in:

A. Endorsement

B. Audit premiums

C. Change plan

D. Policyholder dividends

It is an automobile insurance that reimburses the parties involved in an accident without regard to negligence.

A. No-fault automobile insurance

B. Comprehensive automobile insurance

C. Collision insurance

D. Automobile accidental damage coverage