American Bankers Association CTFA Quiz 4 Topic 9 Questions 16-20

Question: 1

Consider someone who takes home $2500 a month. Using a 20% ratio, he/she should have monthly consumer credit payments of no more than $500 i.e., $2500*0.20= $500. This is the _________ amount of her monthly disposable income that she should need to pay off both personal loans and other forms of consumer credit.

AMaximum

BMinimum

CSame

DActual

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Question: 2

The Counting House, Inc., purchased 5-year property class equipment for $60,000. It uses the MACRS method of depreciation. What is tax depreciation for the second year of the asset's life?

A$12,000

B$19,200

C$20,000

D$24,000

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Question: 3

The principal reasons for using the Sharpe ratio when calculating a portfolio's performance are:

AIt indicates the percentage return above/below the risk-free rate for each unit of risk taken

BIt will always be quoted on a rolling quarterly basis

CA positive Sharpe ratio will always guarantee positive returns

DThe higher the number, the more a portfolio manager can be said to have added value

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Question: 4

Which of the following is the significant requirement for ongoing regulatory reporting to the Office of the Superintendent of Financial Institutions (''OSFI'')?

AThe monthly Return

BCapital Adequacy Return

CConstraints of Sound Business

DStatic Capital Adequacy Test

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Question: 5

Which of the following is known as ''Type 1" account?

ACFA account

BCash account

CReal account

DMargin A/c

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American Bankers Association CTFA Quiz:4 Topic:9 Questions:16-20