Free CTFA Exam Braindumps
Certified Trust and Financial Advisor (CTFA) Questions 116–120 (page: 25)

Updated On: 9-Feb-2026

After opening the checking account, follow these basic procedures Except:

  1. Always right checks in ink
  2. Include the name of the person being paid the date, and the amount of the check
  3. Note the check's purpose on the check
  4. Sign the check in a different way than on the signature card

Answer(s): D



_________ is the result writing a check for an amount greater than the current account balance.

  1. Overdrafts
  2. Undercrofts
  3. Checkbook ledger
  4. Overdraft protection

Answer(s): A



It is a booklet provided with a supply of checks, used to maintain accurate records of all checking account transactions.

  1. Overdrafts
  2. Undercrofts
  3. Checkbook ledger
  4. Overdraft protection

Answer(s): C



An arrangement between the account holder and the depository institution wherein the institution automatically pays a check that overdraws the account is called:

  1. Overdrafts
  2. Undercrofts
  3. Checkbook ledger
  4. Overdraft protection

Answer(s): D



Diversification:

  1. Allows you to profit in any market
  2. Is a way to reduce volatility of your investments
  3. Is the only way to profit in the long run
  4. Requires investing in hundreds of funds

Answer(s): B



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