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American Bankers Association CTFA Exam - Topic 7 Question 106 Discussion

This is a type of employee benefit plan wherein the employer allocates a certain amount of money and then the employee spends that money for benefits selected from a menu covering everything from child care to health and life insurance to retirement benefits.
D) Both of the above are one and the same
A) Flexible benefit plan
B) Cafeteria plan
C) Short-term financial plan

American Bankers Association CTFA Exam - Topic 7 Question 106 Discussion

Actual exam question for American Bankers Association's CTFA exam
Question #: 106
Topic #: 7
[All CTFA Questions]

This is a type of employee benefit plan wherein the employer allocates a certain amount of money and then the employee spends that money for benefits selected from a menu covering everything from child care to health and life insurance to retirement benefits.

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Suggested Answer: D

by Andra at Jun 17, 2026, 05:49 PM

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Elsa
3 days ago
D) Both of the above are one and the same seems too broad. I prefer B.
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Ocie
9 days ago
I agree, but A) Flexible benefit plan sounds similar too.
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Evangelina
14 days ago
I think it's B) Cafeteria plan. It fits the description well.
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Anabel
19 days ago
I thought these plans were just for health benefits!
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Antione
24 days ago
Flexible benefit plan is a broader term, right?
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Fatima
29 days ago
Wait, are they really the same thing?
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Aron
1 month ago
Totally agree, it's super flexible for employees.
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Talia
1 month ago
It's called a Cafeteria plan!
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Bok
1 month ago
I'm a bit confused about the difference between A and B. Are they really different, or is it just terminology?
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Joaquin
2 months ago
I practiced a question similar to this, and I think the key is that employees choose from a menu, which makes me lean towards B.
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Herminia
2 months ago
I remember studying about these plans, and I feel like both A and B could fit, but I think B is more specific.
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Adelaide
2 months ago
I think this sounds like a cafeteria plan, but I'm not entirely sure if flexible benefit plans are the same thing.
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