CANNON FINANCIAL INSTITUTE
CFIRS EXAM QUESTIONS WITH
CORRECT SOLUTIONS||100%
GUARANTEED PASS|| UPDATED
2026/2027 SYLLABUS||ALREADY A+
GRADED||<<RECENT VERSION>>
"A participant cannot, without written spousal consent, take from a qualified plan a
lump-sum distribution that is in excess of:
a. $1,000
b. $2,500
c. $3,500
d. $5,000
" - ANSWER ✓ D
"In order to avoid being considered a distribution and therefore taxes accordingly,
a rollover from a qualified plan to another qualified plan or to an IRA must be
accomplished within:
a. 30 days.
b. 60 days.
c. 90 days.
d. 6 months.
" - ANSWER ✓ B
"Which of the following BEST describes the tax treatment of a lump sum
distribution made in the form of employer securities?
a. The recipient is taxed on the current market value of the securities at the time of
distribution.
,b. Employee security distributions are not taxed until sold by the recipient, at
which time all proceeds are included as ordinary income.
c. The cost basis of the securities is included as ordinary income at the time of
distribution, with any unrealized appreciation exempt from taxation.
d. The cost basis of the securities is included as income upon distribution, with any
net unrealized appreciation eligible for capital gains treatment at the time the
securities are sold.
" - ANSWER ✓ D
"The minimum loan amount a plan may establish by policy is:
a. $500
b. $1,000
c. $10,000
d. There is no minimum amount.
" - ANSWER ✓ B
"With the exception of purchasing a principal residence, a qualified plan loan must
be repaid within ___ years or be taxed as a distribution.
a. 2
b. 5
c. 7
d. 15
" - ANSWER ✓ B
"Which of the following statements regarding QDRO's is FALSE?
a. The plan administrator is responsible for administering the QDRO procedure
and for determining the qualified status of the order.
b. The plan administrator must make a decision on the qualified status of the
QDRO within a ""reasonable period.""
c. The order must give identifying information and describe the benefit parameters
it affects.
d. A QDRO may require the plan to provide a form of benefit or an option the plan
does not provide.
," - ANSWER ✓ D
"Under Regulation 12 CFR 9, any bank, national or state chartered, administering
a Common Trust Fund shall prepare a financial report based on an audit of the
fund:
a. on request of the participants.
b. quarterly.
c. at least every 6 months.
d. at least every 12 months.
e. at least every 12 months for national banks only.
" - ANSWER ✓ D
"Per requirements of 12 CFR 9.18, collective investment funds must be valued at
least:
a. quarterly.
b. quarterly, except for real estate (a)(2) funds.
c. annually, unless otherwise dictated by the written plan.
d. each time admissions and withdrawals are made.
e. monthly.
" - ANSWER ✓ B
"The exercise of Fiduciary Powers by national banks is primarily governed by:
a. state law.
b. 12 CFR 9, Fiduciary Activities of National Banks.
c. Scott, the Law of Trusts.
d. the Board of Governors of the Federal Reserve System.
" - ANSWER ✓ B
"Pursuant to the Uniform Prudent Investor Law, a bank trust department which
utilizes a quality outside investment service in managing discretionary accounts:
a. has no further responsibility regarding investment analysis.
b. must review and approve all actions of the outside adviser, unless specifically
waived by the Board of Directors.
, c. can delegate its investment authority to the outside service provider.
d. can relieve itself of investment discretion, as defined by Regulation 9, in such
situations.
" - ANSWER ✓ C
"The OCC's Regulation 12 CFR 9.10 requires that cash can be invested (made
productive):
a. promptly, which means daily for most institutions.
b. down to a balance of $1 to $100.
c. excluding income cash unless the governing instrument specifically directs that
income cash be invested.
d. promptly, down to a balance of $1 to $100.
" - ANSWER ✓ A
"A formal fiduciary relationship is involved when acting as:
a. trustee, provided the bank is the sole trustee.
b. executor only when the will designates the bank as testamentary trustee.
c. trustee, provided the bank has custody of the assets.
d. trustee, executor, ministerial agent.
e. custodian under the Uniform Gifts to Minors Act.
" - ANSWER ✓ E
"To ascertain if sufficient assets have been pledged by the commercial department
to cover fiduciary funds on deposit with the trustee bank, which of the following
should NOT be added to the net demand deposit account balance at the individual
account level?
a. overdrafts
b. outstanding checks
c. interest bearing accounts of the trustee bank awaiting investment or distribution
" - ANSWER ✓ A
CFIRS EXAM QUESTIONS WITH
CORRECT SOLUTIONS||100%
GUARANTEED PASS|| UPDATED
2026/2027 SYLLABUS||ALREADY A+
GRADED||<<RECENT VERSION>>
"A participant cannot, without written spousal consent, take from a qualified plan a
lump-sum distribution that is in excess of:
a. $1,000
b. $2,500
c. $3,500
d. $5,000
" - ANSWER ✓ D
"In order to avoid being considered a distribution and therefore taxes accordingly,
a rollover from a qualified plan to another qualified plan or to an IRA must be
accomplished within:
a. 30 days.
b. 60 days.
c. 90 days.
d. 6 months.
" - ANSWER ✓ B
"Which of the following BEST describes the tax treatment of a lump sum
distribution made in the form of employer securities?
a. The recipient is taxed on the current market value of the securities at the time of
distribution.
,b. Employee security distributions are not taxed until sold by the recipient, at
which time all proceeds are included as ordinary income.
c. The cost basis of the securities is included as ordinary income at the time of
distribution, with any unrealized appreciation exempt from taxation.
d. The cost basis of the securities is included as income upon distribution, with any
net unrealized appreciation eligible for capital gains treatment at the time the
securities are sold.
" - ANSWER ✓ D
"The minimum loan amount a plan may establish by policy is:
a. $500
b. $1,000
c. $10,000
d. There is no minimum amount.
" - ANSWER ✓ B
"With the exception of purchasing a principal residence, a qualified plan loan must
be repaid within ___ years or be taxed as a distribution.
a. 2
b. 5
c. 7
d. 15
" - ANSWER ✓ B
"Which of the following statements regarding QDRO's is FALSE?
a. The plan administrator is responsible for administering the QDRO procedure
and for determining the qualified status of the order.
b. The plan administrator must make a decision on the qualified status of the
QDRO within a ""reasonable period.""
c. The order must give identifying information and describe the benefit parameters
it affects.
d. A QDRO may require the plan to provide a form of benefit or an option the plan
does not provide.
," - ANSWER ✓ D
"Under Regulation 12 CFR 9, any bank, national or state chartered, administering
a Common Trust Fund shall prepare a financial report based on an audit of the
fund:
a. on request of the participants.
b. quarterly.
c. at least every 6 months.
d. at least every 12 months.
e. at least every 12 months for national banks only.
" - ANSWER ✓ D
"Per requirements of 12 CFR 9.18, collective investment funds must be valued at
least:
a. quarterly.
b. quarterly, except for real estate (a)(2) funds.
c. annually, unless otherwise dictated by the written plan.
d. each time admissions and withdrawals are made.
e. monthly.
" - ANSWER ✓ B
"The exercise of Fiduciary Powers by national banks is primarily governed by:
a. state law.
b. 12 CFR 9, Fiduciary Activities of National Banks.
c. Scott, the Law of Trusts.
d. the Board of Governors of the Federal Reserve System.
" - ANSWER ✓ B
"Pursuant to the Uniform Prudent Investor Law, a bank trust department which
utilizes a quality outside investment service in managing discretionary accounts:
a. has no further responsibility regarding investment analysis.
b. must review and approve all actions of the outside adviser, unless specifically
waived by the Board of Directors.
, c. can delegate its investment authority to the outside service provider.
d. can relieve itself of investment discretion, as defined by Regulation 9, in such
situations.
" - ANSWER ✓ C
"The OCC's Regulation 12 CFR 9.10 requires that cash can be invested (made
productive):
a. promptly, which means daily for most institutions.
b. down to a balance of $1 to $100.
c. excluding income cash unless the governing instrument specifically directs that
income cash be invested.
d. promptly, down to a balance of $1 to $100.
" - ANSWER ✓ A
"A formal fiduciary relationship is involved when acting as:
a. trustee, provided the bank is the sole trustee.
b. executor only when the will designates the bank as testamentary trustee.
c. trustee, provided the bank has custody of the assets.
d. trustee, executor, ministerial agent.
e. custodian under the Uniform Gifts to Minors Act.
" - ANSWER ✓ E
"To ascertain if sufficient assets have been pledged by the commercial department
to cover fiduciary funds on deposit with the trustee bank, which of the following
should NOT be added to the net demand deposit account balance at the individual
account level?
a. overdrafts
b. outstanding checks
c. interest bearing accounts of the trustee bank awaiting investment or distribution
" - ANSWER ✓ A
