American Bankers Association Exam CTFA Topic 2 Question 79 Discussion

Actual exam question for American Bankers Association's Certified Trust and Financial Advisor exam

Question #: 79
Topic #: 2

[All Certified Trust and Financial Advisor Questions]

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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Leota

7 hours ago

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

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Felicitas

1 days 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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Melodie

7 days 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

8 days ago

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

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Erasmo

8 days 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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Devorah

16 days ago

I think the answer is C) Discount rates.

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Desmond

24 days 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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