Certified Trust and Financial Advisor (CTFA): CTFA

Short-duration contracts provide insurance protection for fixed period and can cancel the contract at the end of any contract period.

A. True

B. False

___________ is an unmanaged fund designed to replicates closely as possible the performance of a specified index of market activity.

A. Index fund

B. Reserve fund

C. Mutual fund

D. Pension fund

A commonly sited benefit of leasing is absence of down payment. However, today most leases require a "capital cost reduction" which is the down payment that lowers the potential depreciation and therefore your monthly lease payments. You may be able to negotiate a lower capital cost reduction or find a lease that doesn't require one. The lease payment calculation is based on four variables. Which one of the following:

A. Capitalized cost

B. Forecast residual value

C. Money factor

D. Lease date