Practice Test Geeks(CFB) Certified Freight Broker Practice Test
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Credential and Training Requirements Flashcards

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  1. Under FMCSA rules, a freight broker who also operates as a carrier must ensure that their broker and carrier roles are clearly separated to avoid which prohibited practice?

    Answer: Self-dealing without disclosure

    A broker acting as both broker and carrier in the same transaction without disclosure to all parties constitutes impermissible self-dealing.

  2. If a freight broker's surety bond is cancelled, how many days' notice must the surety company provide to the FMCSA before cancellation is effective?

    Answer: 30 days

    The surety must provide 30 days' written notice to FMCSA before a broker's bond cancellation takes effect.

  3. Which alternative financial instrument may a freight broker use in lieu of a surety bond to meet the $75,000 security requirement?

    Answer: A trust fund agreement

    FMCSA regulations permit a trust fund agreement as an acceptable alternative to a surety bond for freight brokers.

  4. What happens to a freight broker's operating authority if the required surety bond or trust fund lapses?

    Answer: Authority is suspended until new security is filed

    FMCSA suspends the broker's operating authority immediately upon lapse of the required security instrument.

  5. The CTB exam administered by TIA covers which broad knowledge area related to broker credentials and legal compliance?

    Answer: Federal and state regulatory requirements

    The CTB exam includes a regulatory module covering federal statutes and FMCSA rules that govern freight broker operations.

  6. A newly licensed freight broker must register their business entity name with FMCSA. What term describes the operating name if it differs from the legal entity name?

    Answer: Trade name or DBA (doing business as)

    A freight broker operating under a name different from their legal entity name must register it as a trade name or DBA with FMCSA.

  7. How frequently must a freight broker update their MCS-150 (Motor Carrier Identification Report) with the FMCSA?

    Answer: Every two years

    FMCSA requires freight brokers to update their MCS-150 every two years to maintain accurate registration records.