ABA CTFA Exam
Certified Trust and Financial Advisor (CTFA) (Page 6 )

Updated On: 1-Feb-2026

A company can ensure the complete success of a rights offering by making use of a:

  1. Standby arrangement
  2. Oversubscription privilege
  3. Green shoe provision
  4. Shelf registration

Answer(s): A



Using data provided by the credit applicant, along with any information obtained from the credit bureau, the store or bank must decide whether to grant credit. Very likely, some type of credit scoring scheme will be used to make the decision. An overall credit score is developed for you by assigning values to such factors as:

  1. Annual income
  2. Level of debt paid
  3. Level of existing debt
  4. Presence of savings accounts

Answer(s): A,B,D



It is referred to an investigation that involves contacting credit references or corresponding with a credit beureau to verify information on a credit application.

  1. Credit bureau
  2. Credit scoring
  3. Credit investigation
  4. Credit line

Answer(s): C



It is a type of open account offered by banks and other financial institutions that can be accessed by writing checks against demand deposit or specially designated credit line accounts. What is it?

  1. Revolving line of credit
  2. Unsecured personal credit line
  3. Overdraft protection line
  4. Both A and B

Answer(s): A



Overdraft protection line is:

  1. A line of credit linked to a checking account
  2. Its account allows depositor to overdraw the account up to a specified amount
  3. A line of credit linked to a checking account that allows a depositor to overdraw the account up to a specified amount
  4. None of these

Answer(s): A,B



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