Certified Trust and Financial Advisor

Here you have the best ABA CTFA practice exam questions

You have 794 total questions to study from
Each page has 5 questions, making a total of 159 pages
You can navigate through the pages using the buttons at the bottom
This questions were last updated on November 17, 2025
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Question 1 of 794

Financial goals cove a wide range of financial aspirations such as:

Controlling living expenses

Meeting retirement needs

Setting up a savings and investment program

All of the above

Correct Answer: D

Question 2 of 794

This is a type of employee benefit plan wherein the employer allocates a certain amount of money and then the employee spends that money for benefits selected from a menu covering everything from child care to health and life insurance to retirement benefits.

Flexible benefit plan

Cafeteria plan

Short-term financial plan

Both of the above are one and the same

Correct Answer: D

Question 3 of 794

Simon has experience of dealing with retail clients and is now in training to qualify as a pension transfer specialist. As a consequence, which of the following statements are true?

He must have at least 3 years experience as an adviser before his training can commence

His firm is allowed to impose a time limit on completion of the qualification

His supervisor must also be suitably qualified

Once qualified, CPD requirements are waived for 12 months

Once qualified, records of his training must be maintained for at least 5 years

Correct Answer: B, C

Question 4 of 794

The efficient frontier curve shows the optimum balance between:

Risk and return

Return and taxation

Taxation and risk

Inflation and return

Correct Answer: A

Question 5 of 794

A UK investor holds a portfolio of overseas equities and is concerned about the exchange rate risk. Which strategy could he use to mitigate this risk?

Arbitrage

Gearing

Hedging

Pound cost averaging

Correct Answer: C