American Bankers Association CTFA Exam - Topic 1 Question 101 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 101
Topic #: 1

[All CTFA Questions]

Which of the following bonds offer the investor the most protection?

AFirst-mortgage bonds

BDebentures

CSub Ordinated Debentures

DIncome bonds

Show Suggested Answer

Suggested Answer: A

by Casey at Mar 30, 2026, 08:17 AM

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Ronald

18 days ago

Totally agree, they have priority in claims.

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Staci

23 days ago

First-mortgage bonds are the safest!

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Leatha

1 month ago

Income bonds sound familiar, but I can't recall if they offer much protection. I feel like they depend on the issuer's earnings, which makes them riskier.

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Rashida

2 months ago

I practiced a question like this before, and I think subordinated debentures are the least protective since they come after other debts in the repayment hierarchy.

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Kathrine

2 months ago

I'm not entirely sure, but I remember something about debentures being unsecured, which makes them riskier than the others.

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Ardella

2 months ago

I think first-mortgage bonds are usually considered safer because they have a claim on specific assets, right?

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