Certified Trust and Financial Advisor (CTFA) CTFA Dumps 2018

1. Financial goals cove a wide range of financial aspirations such as:

2. These are target dates in the future when certain financial objectives are expected to be completed.

What are these?

3. Today’s well-defined employee benefits package cover a full spectrum of benefits that may include all EXCEPT:

4. Tax deferred retirement plans and flexible spending accounts offer tax advantages. Some retirement plans allow you to__________ against them.

5. Accumulating assets to enjoy in retirement is only part of the:

6. This is a type of employee benefit plan wherein the employer allocates a certain amount of money and then the employee spends that money for benefits selected from a menu covering everything from child care to health and life insurance to retirement benefits.

7. Most financial planners fall into one of two categories based on how they are paid. Commission based planners earn commissions on the financial products they sell, whereas ______________ charge fees based on the complexity of the plan they prepare.

8. When determining the interaction between the UK and EU on the regulation of the financial services industry, the UK government must always

9. A client has previously written to her former adviser opting out of any marketing activities from the firm or any third parties. However she continues to receive direct investment offers from the firm.

She should complain based on the firm not complying with which set of regulations?

10. The Financial Services and Markets Act 2000 regulates the provision of which type(s) of financial advice?

11. Simon has experience of dealing with retail clients and is now in training to qualify as a pension transfer specialist.

As a consequence, which of the following statements are true?

12. The efficient frontier curve shows the optimum balance between:

13. A UK investor holds a portfolio of overseas equities and is concerned about the exchange rate risk.

Which strategy could he use to mitigate this risk?

14. When constructing a portfolio for a UK resident basic-rate taxpayer who requires an income, the most tax efficient solution would be achieved by:

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

16. Pauline, a basic-rate taxpayer, has a portfolio which comprises of various equity and fixed-interest unit trusts and OEICs.

She should be aware that:

17. Philip took out a qualifying onshore endowment policy for 20 years which he made paidup in year 9.

This means that he may become personally liable to tax on the policy proceeds:

18. Bill, a single man, having made full use of his annual gift allowances, made a potentially exempt transfer of £100,000 four and a half years before his death. He has made no other gifts. His residual estate is now valued at £500,000.

The Inheritance Tax liability at death is:

19. On Brian’s death, his estate was valued at £820,000. He bequeathed £40,000 to a registered charity and split the balance equally between his registered civil partner and his brother.

Assuming he made no lifetime transfers, what will the Inheritance Tax liability be?

20. Trevor is a member of a defined benefit company pension scheme.

Which factor relating to his circumstances confirms that he will avoid incurring a special annual allowance charge in the current tax year?

21. Stephen is about to commence taking benefits from his personal pension scheme, which includes protected rights.

He should be aware that:

22. Frank, age 55, is considering adopting a lifestyle investment technique as he aims to build up his personal pension prior to retirement.

He should be aware that:

23. Under an employer’s group life assurance policy, what is the normal tax treatment of the death benefit?

24. If an income protection insurance (PHI) policy has reviewable premiums, this usually means that the insurance company can:

25. Apart from comparing cover and costs, what other key factor should usually be considered if a financial adviser intends to recommend that a client cancels an existing term assurance policy and replaces it with a new one?

26. The primary purpose of a key person insurance policy is to provide funds on the death of the life assured directly to the deceased's:

27. The phase of the economic cycle when levels of employment and production are high and economy is growing, generally accompanied by high prices for goods and services is called:

28. The phase of the economic cycle when levels of employment and production fall and the growth of the economy slows is called:

29. The phase of the economic cycle when levels of employment and production are low and economic growth is at a virtual standstill or even negative is called:

30. Gross domestic product is:

31. It is a measure of inflation based on changes in consumer goods and services:

32. Inflation is a vital concern to financial planning. It affects not only what we pay for our goods and services but also what we earn in our jobs.

The amount of goods and services each dollar buys at a given time is:

33. Balance sheet and income statements that serve as essential planning tools for developing and monitoring personal financial plans may be referred as:

34. It’s a detailed financial report that looks forward, based on expected income and expenses.

35. The actual value of an asset, or the price of an asset, or the price for which it can reasonably be expected to sell in the open market is its:

36. Tangible assets that are immovable: land and anything fixed to it, such as a house is a person’s:

37. It is actually a method of preparing financial statements in which only transactions involving actual cash outlays are recorded.

38. An excess amount of expense over income resulting in insufficient funds as well as in decreased net value is called:

39. Total liquid assets divided by total current debts; measures the ability to pay current debts. It is:

40. Total net worth divided by total assets; measures the degree of exposure to insolvency is:

41. Cash surplus divided by net income (after tax); indicates relative amount of cash surplus achieved during a given period is:

42. Total monthly loan payments divided by monthly gross (before-tax) income; provides a measure of the ability to pay debts promptly is:

43. A cash budget is the valuable money management tool that helps you EXCEPT:

44. Budget control schedule is:

45. "Shareholder wealth" in a firm is represented by:

46. The long-run objective of financial management is to:

47. What are the earnings per share (EPS) for a company that earned $100,000 last year in after-tax profits, has 200,000 common shares outstanding and $1.2 million in retained earning at the year end?

48. A single, overall cost of capital is often used to evaluate projects because:

49. The cost of equity capital is all of the following Except:

50. If the following are balance sheet changes:

$5,005 decrease in accounts receivable

$7,000 decrease in cash

$12,012 decrease in notes payable

$10,001 increase in accounts payablea "use" of funds would be the:

51. The concept that dollar today is worth more than a dollar received in future. It is:

52. Rule 72 is:

53. On an accounting statement of cash flows an "increase(decrease) in cash and cash equivalents" appears as:

54. Uses of funds include a (an):

55. A tax structure in which the larger the amount of taxable income, the higher the rate at which it is taxed is:

56. Average tax rate:

57. Which of the following would be included in a cash budget?

58. It is the deduction of AGI based on the number of persons supported by the taxpayer’s income

59. Exemptions are phased out and eliminated altogether for taxpayers with high levels of AGI.

After adjusting for inflation it applies to single taxpayers with 2008 AGI:

60. The illegal act failing to accurately report income or deductions and in extreme cases, failing to pay taxes altogether is:

61. It is a technique used to reduce taxes in which a taxpayer shifts a portion of income to relatives in lower tax brackets.

What is it?

62. A good way to keep your spending in line is to make all household transactions (even fun money or weekly cash allowances) using a tightly controlled:

63. An account offered by credit unions that is similar to interest paying checking accounts offered by the other financial institutions is:

64. It is a type of insurance account that protects funds on deposit against failure of the institution; can be insured by FDIC and the NCUA.

65. _____________ are a popular offering at bank and other depository institutions and competes for deposits with money market and mutual funds.

66. ________________ pools the funds f many small investors to purchase high return, short term marketable securities offered by the U. S treasury.

67. It is a formal, legal commitment to extend credit up to some maximum amount over a stated period of time.

68. The type(s) of collateral generally used for a secured short-term loan is(are):

69. The investment proposal with the greatest relative risk would have:

70. A safe-deposit box is a rented drawer in a bank’s vault. Boxes can be rented for:

71. Probability-tree analysis is best used when cash flows are expected to be:

72. You are considering two mutually exclusive investment proposals, project A and project B B's expected value of net present value is $1,000 less than that for A and A has less dispersion. On the basis of risk and return, you would say that

73. If two projects are completely independent (or unrelated), the measure of correlation between them is:

74. Managerial options can be viewed as:

75. Checkbook ledger:

76. Assume that you purchase a car for $20,000 in September. You make a down payment of $3000 and finance the remaining amount $17000 with a 4-year, 5.5% installment loan payable monthly.

Your September 30 income statement would show a cash expenditure of $3000, and each subsequent monthly income statement would your monthly loan payment of:

77. Calculating certain financial ratios can help you evaluate your financial performance over time.

What’s more, if you apply for a loan, the lender probably will look at the ratios to judge your ability to carry additional debt.

Four important money management ratios are all of the following Except:

78. The amount of liquid funds will vary with your personal circumstances and comfort level.

Another useful liquidity guideline is to have a reserve fund equal to:

79. Even if, the annual balances, in certain months’ expenses may exceed income, causing a monthly budget deficit. Likewise, a surplus occurs when income in some months exceed expenses.

It remedy may be:

80. It is the value today of an amount to be received in future; it is the amount that would have to be invested today at a given interest rate over a specified period of time to accumulate the future amount.

What is it?

81. The dues paid for membership in our society; the cost of living in this country may be referred as:

82. Taxable income is:

83. Gross income essentially includes any and all income subject to federal taxes.

Here are some common forms of gross income Except:

84. An adoption tax credit of up to $11650 is available for the qualifying costs of adopting child under age 18. Only taxpayers with AGI under $17,730 are eligible for the adoption tax credit. Here are some other common tax credits.

Which of the following is/are Not out of those?

85. An extension of time beyond the April 15 deadline during which taxpayers, with the approval of the IRS, can file their returns without incurring penalties.

86. A technique used to reduce taxes in which a taxpayer shifts a portion of income to relatives in lower tax brackets.

87. When using a probability tree approach, we discount the various cash flows to their present value at:

88. A managerial option, in effect:

89. The presence of managerial, or real, options the worth of an investment project.

90. A firm's degree of operating leverage (DOL) depends primarily upon its:

91. EBIT is usually the same thing as:

92. In the context of operating leverage break-even analysis, if selling price per unit rises and all other variables remain constant, the operating break-even point in units will:

93. This statistic can be used as a quantitative measure of relative "financial risk."

94. Espinosa Coffee & Trading, Inc.'s common stock measured beta is calculated to be 0.75. The market beta is, of course, 1.00 and the beta of the industry of which the company is a part is 1.10.

If Merrill Lych were to calculate an "adjusted beta" for Espinosa's common stock, that adjusted beta would most likely be:

95. What's the value to you of a $1,000 face-value bond with an 8% coupon rate when your required rate of return is 15 percent?

96. If the intrinsic value of a stock is greater than its market value, which of the following is a reasonable conclusion?

97. When the market's required rate of return for a particular bond is much less than its coupon rate, the bond is selling at:

98. Virgo Airlines will pay a $4 dividend next year on its common stock, which is currently selling at $100 per share.

What is the market's required return on this investment if the dividend is expected to grow at 5% forever?

99. Interest rates and bond prices:

100. The expected rate of return on a bond if bought at its current market price and held to maturity.