Question 1

The accumulation phase in annuities can last from as long as:

Options :

A : One day to five years

B : One day to decades

C : Ten days to ten years

D : All of these

Answer: B

Question 2

Which of the following is Correct?

Options :

A :

the financial position of an entity with a 2-to-1 reserve-to-surplus ratio is less affected by variability in its loss reserves than is an entity operating at 4-to-1 ratio.

B :

the financial position of an entity with a 2-to-1 reserve-to-surplus ratio is more affected by variability in its loss reserves than is an entity operating at 4-to-1 ratio.

C :

the financial position of an entity with a 4-to-1 reserve-to-surplus ratio is less affected by variability in its loss reserves than is an entity operating at 2-to-1 ratio.

D :

the financial position of an entity with a 4-to-1 reserve-to-surplus ratio is more affected by variability in its loss reserves than is an entity operating at 2-to-1 ratio.

Answer: A

Question 3

What is the most important of the three financial management decisions?

Options :

A : Asset management decision

B : Financing decision

C : Investment decision

D : Accounting decision

Answer: C

Question 4

Which of the following is a current market in which all buying and selling is done on cash or margin basis?

Options :

A : Target market

B : Historic market

C : Regular market

D : Borough market

Answer: C

Question 5

Adjusting and Others (AO) reserves are often provided for by using the calendar year paidto- paid method rather than the accident year paid-to-paid method used for Inflation in Defense & Cost Containment (DCC) reserves.

Options :

A : True

B : False

Answer: A

Smartly Prepare Exam with Free Online CTFA Practice Test

Buying Options: