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American Bankers Association CTFA Exam - Topic 6 Question 56 Discussion

Posted by Lynelle on Dec 12, 2023 at 01:24 AM

Which investments held by life insurance enterprises should be carried in the balance sheet at amortized cost?

Suggested Answer: C

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19 comments · newest first
CR
Crista 11 months ago
Amortized cost? Isn't that just for bonds and loans?
CA
Carissa 11 months ago
Wait, revenue-earned portfolio? That sounds off.
ZO
Zona 11 months ago
I thought variable-term could be too, but I guess not?
RO
Roxane 11 months ago
Totally agree, fixed-term is the way to go!
MI
Mitsue 11 months ago
Fixed-term portfolio is usually at amortized cost.
MO
Mona 12 months ago
I definitely remember that fixed-term portfolios are often carried at amortized cost, so I'm leaning towards option C.
NU
Nu 12 months ago
I feel like revenue-earned portfolios could be a trick option here, but I can't recall if they fit the amortized cost criteria.
KR
Krystal 12 months ago
I remember practicing a question about investment classifications, and I think variable-term portfolios are usually marked to market, not amortized cost.
JA
Janine 1 year ago
I think the fixed-term portfolio might be the right answer since those are typically held at amortized cost, but I'm not completely sure.
DO
Doyle 1 year ago
I'm a bit unsure about this one. The wording is a bit tricky, and I want to make sure I understand the nuances between the different investment categories before selecting an answer.
ED
Edgar 1 year ago
I've got a good handle on this topic. I believe the fixed-term portfolio would be the correct answer, as those investments are typically carried at amortized cost on the balance sheet.
MI
Mireya 1 year ago
Okay, let me think this through. I know amortized cost is used for certain fixed-income securities, but I'm not sure which specific investments would qualify for life insurers. I'll need to reference my notes to refresh my memory.
JA
Janessa 1 year ago
Hmm, this seems like a tricky one. I'll need to carefully review the concepts around amortized cost and how they apply to different types of investments held by life insurance enterprises.
LA
Laquanda 1 year ago
This seems like a tricky situation. I'll need to carefully weigh the pros and cons of each option before deciding.
SE
Serina 1 year ago
This question looks pretty straightforward. I think I can solve it by calculating the capital gains and then figuring out the amount of bonds to purchase to make the liability "Nil".
AL
Alberta 1 year ago
No problem, I've got this. Just need to do the simple math calculation.
XO
Xochitl 1 year ago
Hmm, I'm a bit confused. I'm not sure if I fully understand the difference between supervised and unsupervised methods in this context. I'll need to think through the options carefully.
HU
Hubert 1 year ago
From what I remember, UDX is used to accelerate data processing by keeping it in-database rather than moving it out. I'm pretty confident that's one of the primary purposes. I'll select that option.
GA
Gayla 1 year ago
From what I recall, syslog messages definitely go through the APIC. It seems crucial for logging, but I'm not 100% sure about the spine's involvement.
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