Exam 2: Certified Trust and Financial Advisor

A method of determining the amount of life insurance coverage needed by multiplying gross annual earnings by some selected number is called:

There are different classes of mutual funds. Classes that typically do not have a front-end sales load. Instead they may impose a contingent deferred sales load and a 12b-1 fee (along with other annual expenses) is called:

____________ swaps give companies extra flexibility to exploit their comparative advantage in their respective borrowing markets.

Even if the policy's requirements are met, the insured must pay long-term care expenses during waiting, or elimination period. Typical waiting periods are:

Which of the following is an objective of a tax shelter?

A comprehensive automobile insurance policy designed to be easily understood by the "typical" insurance purchaser is called:

Which of the following instruments is NOT typically associated with spending?

Which of the following represents an unusually risky stock?

It is the initial amount not covered by an insurance policy and thus the insured's responsibility; it's usually determined on a calendar-year basis or on a per-illness or eraccident basis. We may call it as:

The objective for the __________ strategy is similar to that of capital appreciation; namely, the investors want the portfolio to grow over time to meet a future need. Whereas the capital appreciation strategy seeks to do this primarily through capital gains, this strategy seeks to increase portfolio value by both capital gains and reinvesting current income.

A statistical measure of the variability of a distribution around its mean is referred to as __________.

All of these are disadvantages of mutual funds EXCEPT:

Overall "market risk" poses the greatest potential danger for investors in ____________.

Audit objectives that apply to one sales portion are all EXCEPT:

Which order will be executed automatically at the current bid or ask price?

I- A gold producers wants to hedge his losses attributable to a fall in the price of gold for his current gold inventory. II- A cattle farmer wants to hedge his exposure to changes in the price of his livestock These are the examples of __________ who need to manage their exposure to fluctuations in the prices of their commodities.

All of the following are the levels of market efficiency, Except:

Which of the following is also called the Gordon's Growth Model?

Guaranteed investment contracts are contracts between:

The pro rata portion of premiums written allocable to unexpired policy periods represents unearned premiums, which are reflected as ___________ in the balance sheet.