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American Bankers Association CTFA Exam - Topic 6 Question 98 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 98
Topic #: 6

[All CTFA Questions]

All of the following are the causes of change in investor's circumstances, EXCEPT:

AInvestment horizon changes

BLiquidity requirement changes

CAuthority circumstance changes

Dtax circumstances changes

Show Suggested Answer

Suggested Answer: C

by Alise at Jan 05, 2026, 05:16 AM

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Jaleesa

2 months ago

Exactly! Changes in tax or liquidity are crucial for investors.

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Tegan

2 months ago

Right! The other options are more relevant to personal finance.

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Roosevelt

2 months ago

Agreed! It doesn't really affect personal investments.

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Laquanda

3 months ago

I think it's C. Authority circumstance changes.

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Francesco

3 months ago

I thought tax circumstances could also be a stretch, but C is definitely not a cause.

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Agustin

3 months ago

Yeah, C doesn't really fit with the rest.

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Jolanda

3 months ago

Wait, are we sure about C? Seems like it could matter too.

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Frederic

3 months ago

Totally agree, the other options are definitely causes.

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Devorah

3 months ago

C) Authority circumstance changes is the odd one out.

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Daniel

4 months ago

Tax circumstances changes? That's the only one that's actually relevant to an investor's situation. C is the odd one out.

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Linsey

4 months ago

Haha, "authority circumstance changes"? Is that like when the investor becomes the new CEO or something? Definitely C.

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Tien

4 months ago

Authority circumstance changes? What does that even mean? Clearly the answer is C.

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Maia

5 months ago

Hmm, I'm going with B. Liquidity requirement changes. That's the one that doesn't quite fit with the other options.

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Tamesha

5 months ago

D. tax circumstances changes is the odd one out here. The rest are all valid reasons an investor's situation could change.

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Bernadine

5 months ago

I think the answer is C. Authority circumstance changes doesn't seem like a valid cause of change in an investor's circumstances.

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Daryl

5 months ago

I agree with the others that C seems off. Tax circumstances and liquidity are definitely big factors, but I can't recall any examples involving authority changes.

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Ilene

5 months ago

I’m a bit confused about the term "authority circumstance changes." Does that really impact an investor's situation? It feels like a trick question.

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Margurite

5 months ago

I remember a practice question that focused on liquidity needs and investment horizons. They definitely affect investor circumstances, so I think those options are out.

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Alverta

6 months ago

I think the answer might be C) Authority circumstance changes, but I'm not entirely sure. It seems less related to personal finance than the others.

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Armando

6 months ago

Yikes, this is a tough one. I'm going to have to guess on this, but I'll try to eliminate the answers I'm more sure about first.

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Susana

6 months ago

I'm feeling pretty confident about this one. I remember discussing these types of investor changes in class, so I think I can narrow it down logically.

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Talia

6 months ago

Okay, I've got a strategy. I'll think about the key factors that can impact an investor's situation, then see which one doesn't fit. Liquidity needs and tax situation are definitely important, so I'll focus on figuring out that "authority circumstance" thing.

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Mitzie

6 months ago

Ugh, I'm not sure about this. I know investment horizon and tax circumstances can change, but what's an "authority circumstance"? I'll have to think this through carefully.

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Kati

7 months ago

Hmm, this one seems straightforward. I'll start by eliminating the obvious answers and then focus on the tricky one.

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Rosita

5 days ago

Agreed, C is the odd one out!

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Elin

10 days ago

C seems out of place.

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Hannah

16 days ago

I think A and B are definitely causes.

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