ABA CTFA Exam
Certified Trust and Financial Advisor (CTFA) (Page 3 )

Updated On: 1-Feb-2026

It is a legal proceeding that results in "wiping the slate clean and starting anew"; most of the debtor's obligations are eliminated in an attempt to put the debtor's financial affairs in order. What is it?

  1. Personal bankruptcy
  2. Straight bankruptcy
  3. Wage earn plan
  4. Both A and B

Answer(s): B



It is a form of legal recourse open to insolvent debtors, who may petition a court for protection from creditors and arrange for the orderly liquidation and distribution of their assets.

  1. Personal bankruptcy
  2. Straight bankruptcy
  3. Wage earn plan
  4. Both A and B

Answer(s): A



They say it pays to shop around and when it comes to credit cards that are certainly true. Regardless of which category they fall into, there are basically four credit card features to look for. Which of the following is/are out of those features?

  1. Annual fees
  2. Rate of interest charged on account balance
  3. Length of the expiration period
  4. Method of calculating balances

Answer(s): C



The amount of interest one pays to open credit depends on the method the lender uses to calculate the balances on which they apply finance charges.

  1. Partly
  2. Fully
  3. Quarterly
  4. None of these

Answer(s): A



In 3 years you are to receive $5, 000. If the interest rate were to suddenly increase, the present value of that future amount to you would:

  1. Fall
  2. Rise
  3. Remain unchanged
  4. Cannot be determined without more information

Answer(s): A



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