CTFA Study Guide 2026
Everything you need to pass the CTFA exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 CTFA Exam Format at a Glance
📚 CTFA Topics to Study (21)
✍️ Sample CTFA Questions & Answers
1. Which fixed-income measure describes the sensitivity of a bond's price to changes in interest rates?
Duration measures the approximate percentage change in a bond's price for a 1% change in interest rates—longer duration means greater interest rate sensitivity.
2. The IRC Section 7520 rate is used in charitable planning primarily to:
The Section 7520 rate (120% of the applicable federal midterm rate, published monthly) is used to calculate the actuarial present value of income and remainder interests in split-interest trusts such as CRTs and CLTs.
3. What is dollar-cost averaging and what is its primary behavioral benefit for long-term investors?
Dollar-cost averaging invests fixed amounts on a schedule regardless of price, automatically buying more shares when prices fall and fewer when prices rise.
4. Which statute governs the delegation of trustee investment functions to agents such as investment advisors?
The UPIA expressly permits trustees to delegate investment functions to qualified agents and defines the standard of care trustees must apply when selecting, monitoring, and instructing agents.
5. The 10-year rule under the SECURE Act requires most non-spouse inherited IRA beneficiaries to do which of the following?
The SECURE Act eliminated the stretch IRA for most non-spouse beneficiaries and requires full distribution of the inherited IRA within 10 years of the original owner's death.
6. Under the spousal rollover rules, a surviving spouse who inherits an IRA may do which of the following that other beneficiaries cannot?
A surviving spouse can roll an inherited IRA into their own IRA, delaying RMDs until they themselves reach the required beginning date age.