American Bankers Association Exam CTFA Topic 7 Question 77 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 77
Topic #: 7

Fair quoted techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs.

ATrue

BFalse

Show Suggested Answer

Suggested Answer: B

by Carma at Sep 15, 2024, 11:35 AM

Limited Time Offer

25%

Off

Get Premium CTFA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Vicki

2 months ago

Ha! Anyone who picks B is probably trying to hide something. Gotta love those unobservable inputs, right? Nah, just kidding. A is the way to go.

upvoted 0 times

Katlyn

1 months ago

Totally agree! A all the way, let's stick to observable inputs for fair value measurement.

upvoted 0 times

...

Corazon

1 months ago

Haha, yeah, A is definitely the way to go. Can't trust those unobservable inputs.

upvoted 0 times

...

Kiley

2 months ago

upvoted 0 times

...

Marylin

3 months ago

I agree with the others. Option A is the correct choice. Maximizing observable inputs is a must for fair quoted techniques.

upvoted 0 times

Sabrina

2 months ago

Yes, maximizing observable inputs is crucial for fair quoted techniques.

upvoted 0 times

...

Vesta

2 months ago

A) True

upvoted 0 times

...

Taryn

2 months ago

I agree, option A is the correct choice.

upvoted 0 times

...

Harley

2 months ago

A) True

upvoted 0 times

...

Helaine

3 months ago

I agree with Martin. Using observable inputs is more reliable in determining fair value.

upvoted 0 times

...

Tawna

3 months ago

False. Sometimes unobservable inputs are necessary for certain assets.

upvoted 0 times

...

Martin

3 months ago

True. It makes sense to rely more on observable inputs for accuracy.

upvoted 0 times

...

Jospeh

3 months ago

Absolutely! Minimizing unobservable inputs is crucial for maintaining transparency and reliability in fair value assessment.

upvoted 0 times

...

Octavio

3 months ago

That's a no-brainer! Of course, the true answer is A. Using observable inputs is the way to go for fair value measurement.

upvoted 0 times

Micaela

2 months ago

B) False

upvoted 0 times

...

Merissa

2 months ago

I agree, using observable inputs ensures transparency and reliability.

upvoted 0 times

...

Alecia

2 months ago

Absolutely! Observable inputs are key for accurate fair value measurement.

upvoted 0 times

...

Sherita

2 months ago

A) True

upvoted 0 times

...