Question 1
Under federal law, a property broker must maintain a surety bond (BMC-84) or trust fund (BMC-85) on file with the FMCSA. What is the minimum required amount of that financial security?
Show answer & explanation
Correct answer: C - $75,000
10 free, exam-style Certified Transportation Broker (CTB) practice questions with answers and explanations. No signup required. Work through them below, then take the full free CTB practice test to study every exam domain.
Under federal law, a property broker must maintain a surety bond (BMC-84) or trust fund (BMC-85) on file with the FMCSA. What is the minimum required amount of that financial security?
Correct answer: C - $75,000
A shipment is lost while moving in interstate commerce. The shipper arranged the move through a property broker, who tendered the freight to an authorized motor carrier. Under the Carmack Amendment, which party is generally liable for the cargo loss?
Correct answer: B - The motor carrier that transported the freight
A broker pays a carrier $1,800 to haul a load and wants to earn a 20% gross margin on the sale to the shipper. What is the minimum the broker must charge the shipper?
Correct answer: D - $2,250
A new dispatcher confuses property brokers with freight forwarders. What is the PRIMARY legal distinction between the two?
Correct answer: A - The forwarder takes possession of the freight and issues its own bill of lading
A broker hires a carrier whose cargo insurer later denies an otherwise valid freight claim, leaving the broker exposed. Which coverage is specifically designed to respond in this situation?
Correct answer: C - Contingent cargo coverage
A shipper has four pallets that do not fill a trailer, with no urgent delivery deadline and a tight freight budget. Which transportation option should the broker recommend?
Correct answer: B - Less-than-truckload (LTL), matching cost to a partial shipment
A motor carrier accepts a load directly from a broker, then - without the broker's knowledge or permission - re-tenders that same load to a different carrier to haul it. This prohibited practice is known as:
Correct answer: D - Double brokering the load without authorization
A broker-carrier agreement includes a clause prohibiting the carrier from directly soliciting freight from the broker's shipper customer. This clause is referred to as a:
Correct answer: A - A back-solicitation (non-circumvention) clause
A broker new to the business is surprised by recurring cash-flow pressure. Which statement BEST explains the working-capital challenge that is typical of freight brokerage?
Correct answer: C - Carriers are often paid before the shipper pays the broker
The bill of lading is one of the most important documents in a freight move. It serves all of the following functions EXCEPT:
Correct answer: D - Proof of the broker's operating authority
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