ABA CTFA Exam
Certified Trust and Financial Advisor (CTFA) (Page 7 )

Updated On: 1-Feb-2026

When n = 1, this interest factor equals one for any positive rate of interest.

  1. PVIF
  2. FVIF
  3. PVIFA
  4. FVIFA

Answer(s): D



It is a line of credit made available to an individual on an as-needed basis.

  1. Home equity credit line
  2. Overdraft protection line
  3. Revolving line of credit
  4. Unsecured personal credit line

Answer(s): D



A loan that is repaid in a series of fixed, scheduled payments rather than a lump-sum is referred to as:

  1. Single payment loan
  2. Mortgage loan
  3. Installment loan
  4. College savings plan

Answer(s): C



A firm that makes secured and unsecured personal loans to qualified individuals, also called a small loan company is called:

  1. Credit unions
  2. Consumer finance company
  3. Sales finance company
  4. Captive finance company

Answer(s): B



A legal claim permitting the lender in case the borrower defaults, to liquidate the items serving as collateral to satisfy the obligation is called:

  1. Chattel mortgage
  2. Lien
  3. Collateral note
  4. Loan application

Answer(s): B



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