Free American Bankers Association CTFA Exam Questions

Become American Bankers Association Certified with updated CTFA exam questions and correct answers

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Total 900 Questions | Updated On: Oct 28, 2025

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Question 1

When one buys a cash instrument, for example 100 shares of ABC Inc., the payoff is linear(disregarding the impact of dividends). If share are purchased at $50 and the price appreciated to $75, we have ________ on a mark-to-mark basis.

A : Made $2500

B : Lost $2500

C : Made $2500

D : None of these

Answer: A

Question 2

Which one of the following is correct formula for calculating operating margin?

A : Net Profit/Net Sales

B : Net income/Net Sales

C : Operating income/Net Sales

D : Operating income/credit sales

Answer: C

Question 3

Which of the following is the right to sell?

A : System option

B : Strategic option

C : Call option

D : Put option

Answer: D

Question 4

Which of the following is the ratio of a company’s total market value (price times number of shares) divided by sales?

A : Price to sales ratio

B : Price to book value ratio

C : Debt coverage ratio

D : Leverage ratio

Answer: A

Question 5

What represents the amounts needed to provide for the estimated ultimate cost of settling claims relating to insured events that have occurred on or before a particular date?

A : Independent claim adjustment

B : Payment of claims

C : Insured claim adjustments

D : Claim adjustment expenses

Answer: D

Page: 1 / 180

Total 900 Questions | Updated On: Oct 28, 2025

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