Free CTFA Exam Braindumps (page: 28)

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A comprehensive deposit account, offered primarily by brokerage houses and mutual funds is a/an:

  1. Money market deposit account
  2. Negotiable order of withdrawal account
  3. Money market mutual funds
  4. Asset management account

Answer(s): D



Money market deposit account is a federally insured savings account, offered by banks and other depository institutions, that competes with money market mutual funds. Depositors can check-writing privileges or ATM to access MMDA accounts. A major problem with the growing popularity of interest-paying checking accounts has been:

  1. A slump in monthly bank charges, which can easily amount to more than the interest earned on all but the highest account balances
  2. A fall in monthly bank charges, which can easily amount to more than the interest earned on all but the highest account balances
  3. A rise in monthly bank charges, which can easily amount to more than the interest earned on all but the highest account balances
  4. A rise in monthly bank charges, which can easily amount less than the interest earned on all but the highest account balances

Answer(s): C



This type of risk is avoidable through proper diversification:

  1. Portfolio risk
  2. Systematic risk
  3. Unsystematic risk
  4. Total risk

Answer(s): C



A statistical measure of the degree to which two variables (e.g., securities' returns) move together is:

  1. Coefficient of variation
  2. Variance
  3. Co-variance
  4. Certainty equivalent

Answer(s): C






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