American Bankers Association Exam CTFA Topic 2 Question 79 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 79
Topic #: 2

To avoid double counting or omitting the effects of risks factors what should reflect assumptions that are consistent with those inherent in the cash flows?

AEconomic flow

BNominal flows

CDiscount rates

DInflation effect

Show Suggested Answer

Suggested Answer: C

by Jaime at Sep 17, 2024, 10:04 AM

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Beata

3 months ago

Double counting risks? Sounds like my financial advisor's strategy. C) Discount rates, but the joke's on me.

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Nu

3 months ago

Wait, are we talking about cash flows or cash cows? I'm just here for the puns, folks.

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Leota

3 months ago

Discount rates? More like discount my chances of passing this exam! *sigh* C) Discount rates it is.

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Felicitas

4 months ago

Hmm, this is a tricky one. I'm going with B) Nominal flows. Who needs to worry about inflation anyway? #YOLO

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Cheryll

3 months ago

I see your point, but I still think B) Nominal flows is the way to go. Let's agree to disagree.

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Goldie

3 months ago

I disagree, I believe it's A) Economic flow. That's the key factor here.

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Glory

3 months ago

I think it's C) Discount rates. That's what really matters in the end.

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Melodie

4 months ago

I'm not sure, but I think it could also be A) Economic flow. It makes sense to consider economic factors in cash flow assumptions.

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Lanie

4 months ago

I agree with Devorah. Discount rates should reflect assumptions to avoid double counting.

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Erasmo

4 months ago

D) Inflation effect seems like the most logical choice to me. Accounting for inflation is crucial to avoid double counting.

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Chau

2 months ago

B) Nominal flows should also be taken into account to reflect consistent assumptions in cash flows.

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Sherman

3 months ago

D) Inflation effect is indeed crucial to ensure accurate cash flow projections.

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Helaine

3 months ago

C) Discount rates play a significant role in avoiding double counting or omitting risk factors.

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Claribel

3 months ago

A) Economic flow is also important to consider when reflecting assumptions in cash flows.

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Devorah

4 months ago

I think the answer is C) Discount rates.

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Desmond

4 months ago

I think the correct answer is C) Discount rates. The discount rates should reflect the assumptions that are consistent with the cash flows.

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Tegan

3 months ago

It's essential to use discount rates that align with the inherent risks in the cash flows.

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Luisa

3 months ago

Discount rates play a crucial role in ensuring the consistency of assumptions with cash flows.

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Carissa

3 months ago

Yes, it's important to consider the discount rates when evaluating risk factors.

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Florinda

3 months ago

I agree, the discount rates should reflect the assumptions in the cash flows.

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