American Bankers Association Exam CTFA Topic 5 Question 63 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 63
Topic #: 5

The approach in which the investment policy should ''identify acceptable ranges for investments in different types of instruments, including cash, equities, bonds and debentures, and real property is known as:

APrudent Person Approach

BCash Outflow Approach

CRegular investment Approach

DAsset requisition Approach

Show Suggested Answer

Suggested Answer: A

by Lonny at Apr 25, 2024, 11:41 PM

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Minna

7 months ago

Yes, the policy should definitely cover cash, equities, bonds, and real property.

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Adrianna

7 months ago

I think the key is to consider different types of instruments in the investment policy.

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Sylvie

8 months ago

I'm not sure, but I think it might be C) Regular Investment Approach.

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Minna

8 months ago

I agree with The Prudent Person Approach makes sense for creating acceptable ranges for investments.

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Adrianna

9 months ago

I think the answer is A) Prudent Person Approach.

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Hana

9 months ago

No, it's not. The correct answer is A) Prudent Person Approach.

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Nada

9 months ago

Is it also known as the Cash Outflow Approach?

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Glenn

9 months ago

A) Prudent Person Approach

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Cristal

9 months ago

What is the approach where the investment policy identifies acceptable ranges for investments in different types of instruments?

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