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

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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.

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Katlyn

1 months ago

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

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Corazon

1 months ago

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

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Kiley

1 months ago

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Marylin

2 months ago

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

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Sabrina

1 months ago

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

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Vesta

1 months ago

A) True

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Taryn

2 months ago

I agree, option A is the correct choice.

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Harley

2 months ago

A) True

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Helaine

2 months ago

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

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Tawna

2 months ago

False. Sometimes unobservable inputs are necessary for certain assets.

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Martin

2 months ago

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

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Jospeh

3 months ago

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

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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.

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Micaela

1 months ago

B) False

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Merissa

2 months ago

I agree, using observable inputs ensures transparency and reliability.

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Alecia

2 months ago

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

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Sherita

2 months ago

A) True

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