Free American Bankers Association CTFA Demo Questions

Question #1 (Topic: Demo Questions)

What is the primary purpose of a trust?

A.

To eliminate all taxes

B.

To hold and manage assets for the benefit of designated beneficiaries

C.

To guarantee investment returns

D.

To avoid all legal obligations

Correct Answer: B

Question #2 (Topic: Demo Questions)

Who is responsible for managing trust assets according to the trust agreement?

A.

Beneficiary

B.

Settlor

C.

Trustee

D.

Creditor

Correct Answer: C

Question #3 (Topic: Demo Questions)

What is a revocable trust?

A.

A trust that cannot be changed

B.

A trust that the grantor can generally amend or terminate during their lifetime, subject to its terms and applicable law

C.

A trust that automatically expires after one year

D.

A trust created only for charitable organizations

Correct Answer: B

Question #4 (Topic: Demo Questions)

What does the fiduciary duty of loyalty require?

A.

Prioritizing the trustee's personal interests

B.

Acting in the interests of the beneficiaries

C.

Avoiding all investment decisions

D.

Distributing all trust assets immediately

Correct Answer: B

Question #5 (Topic: Demo Questions)

What is the primary purpose of a trust accounting?

A.

To calculate employee salaries

B.

To document trust income, expenses, assets, and distributions

C.

To determine bank marketing expenses

D.

To eliminate investment risk

Certified Trust and Financial Advisor (CTFA) CTFA Exam Questions

Correct Answer: B

Correct Answer: C

Correct Answer: B

Correct Answer: B

Correct Answer: B