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ABA: The American Bankers Association
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The sample test questions below are representative of the type of questions you will find on the examination.

1. Depository Trust Company (DTC) Networking supports the processing of which of the following types of securities:

a. Mutual funds
b. Swaps
c. Futures
d. Broker certificates of deposits

2. Megan Charles purchased 100,000 par value General Electric Bonds and paid $95,500. Two years later she sold the bonds for $98,500. Megan has:

a. Unrealized gain
b. Return of capital
c. Realized gain
d. Premium

3. When a bond is secured by other bonds and securities, it is referred to as a:

a. Debenture bond
b. Mortgage bond
c. Insured bond
d. Collateral trust bond
e. Revenue bond

4. A letter of intent (LOI) may be backdated up to how many days past the original purchase date?

a. 30 days
b. 90 days
c. 120 days
d. 365 days

5. Which of the following asset types allows an investor to invest in foreign markets without purchasing a foreign security?

a. ADR's
b. ARM's
c. CMO's
d. Bankers' Acceptance

Answer Key

1. a
2. c
3. d
4. b
5. a