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Certified Trust and Financial Advisor (CTFA) Questions 121–125 (page: 26)

Updated On: 9-Feb-2026

An order made by an account holder instructing the depository institution to refuse payment on an already issued check.

  1. Overdraft
  2. Stop payment
  3. Overdraft protection
  4. Checkbook ledger

Answer(s): B



It is a check payable to a third party that is drawn by a bank on itself in exchange for the amount specified plus, in most cases, a service fee (of about $5).

  1. Cashier's check
  2. Traveler's check
  3. Certified check
  4. None of these

Answer(s): A



Short-term interest rates generally fluctuate long-term rates, so it pays to monitor interest rate movements, shop around for the best rates, and place your funds in savings vehicles consistent with your needs.

  1. More than
  2. Less than
  3. Equal to
  4. None of the above

Answer(s): A



Many financial planning experts recommend keeping a minimum of to of your investment portfolio in savings-type instruments in addition t the 3 to 6 months of liquid reserves noted earlier. Someone with $50, 000 in investment should probably have a minimum of $5000 to $12500.

  1. 10% to 15%
  2. 20% to 30%
  3. 10% to 25%
  4. 20%-25%

Answer(s): C



This is a saving bond issued by various denominations by the U.S Treasury. These are backed by the U.S government and can be replaced without charge in case of loss theft or destruction.

  1. Series EE
  2. I Saving bond
  3. U.S. Treasury Bills
  4. CPI-U

Answer(s): A



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