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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Jenifer

2 hours ago

I think A) First-mortgage bonds offer the most protection. They are secured by property.

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Isabelle

5 days ago

Subordinated debentures are definitely riskier than the others!

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Annmarie

10 days ago

Surprised that income bonds are even an option here.

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Brandon

16 days ago

I thought debentures were pretty secure too?

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Ronald

2 months ago

Totally agree, they have priority in claims.

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Staci

2 months ago

First-mortgage bonds are the safest!

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Leatha

3 months 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

3 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

3 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

3 months ago

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

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