American Bankers Association CTFA Exam - Topic 10 Question 30 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 30
Topic #: 10

_____________ is considered to be self-sustaining if it is financially and operationally independent of the reporting enterprise.

ARetrocession

BReinsurance

CPortfolio Investments

DForeign operation

Show Suggested Answer

Suggested Answer: D

by Barrett at May 29, 2022, 07:42 AM

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Pura

7 months ago

Totally agree, D is the right choice!

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Helaine

7 months ago

Really? I’m surprised it’s not B, that seems more fitting.

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Lenny

7 months ago

A self-sustaining entity needs to be independent, so D makes sense.

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Johna

7 months ago

I thought it was B, Reinsurance.

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Mariann

7 months ago

It's definitely D, Foreign operation.

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Aretha

8 months ago

I keep mixing up these terms, but I think retrocession is more about transferring risk, so it can't be A.

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Stevie

8 months ago

I feel like we covered this in class, and I thought self-sustaining referred to portfolio investments. Could that be C?

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Sherell

8 months ago

I'm not entirely sure, but I remember something about reinsurance being related to financial independence. Maybe it's B?

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Leah

8 months ago

I think the answer might be D, foreign operation, since it can operate independently from the main business.

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Salena

8 months ago

I've got this! The phases listed in the question are feasibility study, concept development, design, and prototype, so the correct answer is A.

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Jesse

8 months ago

I see 'Rest' and 'Ice' in multiple answers. I'll carefully look at the last three words to figure this out systematically.

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