IIA Exam IIA-CFSA Topic 8 Question 77 Discussion

Actual exam question for IIA's IIA-CFSA exam

Question #: 77
Topic #: 8

[All IIA-CFSA Questions]

An index method that credits index-linked interest based on any increase in index value from

the index level at the beginning of the contract's term to the highest index value at various

points during the contract's term is called:

APoint to point method

BAnnual retuned

CThe high watermarks method

DThe low water mark method

Show Suggested Answer

Suggested Answer: C

by Alecia at Jul 06, 2025, 06:16 PM

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Reita

2 days ago

I believe the correct answer is A) Point to point method because it calculates interest based on the increase in index value.

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Cherelle

5 days ago

I'm not sure, but I think it could also be C) The high watermarks method.

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Helene

6 days ago

I'm pretty sure it's the point to point method. Anything involving 'index-linked interest' has to be related to that, right?

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Laticia

9 days ago

The high watermarks method seems like the obvious choice here. I mean, who doesn't love a good high-water mark?

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Simona

13 days ago

I agree with Lorean, the Point to point method makes sense for this scenario.

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Lorean

18 days ago

I think the answer is A) Point to point method.

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