American Bankers Association CTFA Quiz 2 Topic 6 Questions 6-10

Question: 1

A typical mutual fund doesn't generally:

AInvest commercial papers

BInvest in small growth companies

CInvest in large growth companies

DInvest in stocks

Show Answer

Question: 2

It occurs when you don't make full payment on your previous bill.

ADiscount

BReward points

CFinance charge

DMembership fee

Show Answer

Question: 3

The most popular form of automobile lease is the one in which at the end of its term the lessee simply turns in the car (assuming the preset mileage limit has not been exceeded and the car hasn't abused)

AClose-end lease

BOpen-end lease

CWalk away lease

DBoth A and C

Show Answer

Question: 4

Assume that a "temporary" additional (US federal tax related) first-year bonus depreciation of 50 percent applies to a new, $100,000 piece of equipment purchased by Bellemans Chocolatier, Inc. The asset has a $10,000 estimated final salvage value. If this asset is fully depreciated for tax purposes over its useful life, the overall amount that Bellemans will have depreciated for tax purposes is .

A$90,000

B$100,000

C$135,000

D$150,000

Show Answer

Question: 5

A UIT typically issues redeemable securities (or ''units''), like a mutual fund, which means:

AThat the UITs typically will make a one-time ''public offering''

BA UIT does not activity trade its investment portfolio

CThat the UIT will, buy back an investor's request at their approximate net asset value

DAll of these

Show Answer

American Bankers Association CTFA Quiz:2 Topic:6 Questions:6-10