American Bankers Association Exam CTFA Topic 1 Question 50 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 50
Topic #: 1

[All CTFA Questions]

The difference between the purchase price and the repurchase price, or sale price, plus accrued interest on the security represents:

AAccounting agreement

BInvestment income

CDollar price

DSaving price

Show Suggested Answer

Suggested Answer: B

by Minna at Jul 26, 2023, 12:00 PM

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Joaquin

15 days ago

Saving price? What is this, a coupon for a discount at the local supermarket? I'm sticking with C, the dollar price. Much more Wall Street-y.

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Teri

16 days ago

Accounting agreement? What even is that? I'm going with C, the dollar price. Sounds like the most straightforward answer to me.

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Geoffrey

19 days ago

Hmm, I'm not convinced. Wouldn't the 'saving price' be the more accurate term for this situation? D seems like the best option to me.

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Talia

1 days ago

User 1: I think it's actually B) Investment income.

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Fletcher

1 months ago

I'm pretty sure the answer is B - Investment income. The difference in price is the income earned on the security, right?

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Amos

3 days ago

So, the answer is definitely B - Investment income.

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Lonny

14 days ago

Yes, the difference in price is the income earned on the security.

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Lera

22 days ago

I think you're right, it does sound like Investment income.

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Renea

2 months ago

Option C seems like the most logical choice here. The difference between the purchase and sale price is the dollar price, which represents the return on the investment.

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Shanice

1 days ago

B) Investment income

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Peggy

21 days ago

Yes, the dollar price is the key factor in calculating the return on investment.

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Francoise

24 days ago

A) Accounting agreement

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Irene

1 months ago

I agree, option C makes the most sense. It's all about the dollar price.

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Asuncion

2 months ago

I'm not sure. I think it could also be C) Dollar price because it involves the price of the security in dollars.

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Bernadine

2 months ago

I agree with Ahmed. The difference between purchase and sale price plus accrued interest is definitely investment income.

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Ahmed

2 months ago

I think the answer is B) Investment income.

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