SOFE Exam AFE Topic 3 Question 66 Discussion

Actual exam question for SOFE's AFE exam

Question #: 66
Topic #: 3

[All AFE Questions]

From what the most direct value-based requirements arise which are present in account value accumulation products?

Aprofit margins

Bpolicy holding rates

Cimplicit interest rates

Dwithdrawal provisions

Show Suggested Answer

Suggested Answer: D

by Yvonne at Dec 08, 2023, 01:46 PM

Limited Time Offer

25%

Off

Get Premium AFE Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Lino

17 days ago

Wait, is the answer supposed to be the most important requirement or the most direct one? Because those could be different things...

upvoted 0 times

...

Curtis

19 days ago

A) profit margins? Really? I thought this was about the product's value to the customer, not the company's bottom line.

upvoted 0 times

...

Desire

24 days ago

D) withdrawal provisions definitely play a big role. The rules around accessing the accumulated value are crucial.

upvoted 0 times

...

Goldie

26 days ago

Hmm, I'm not sure. B) policy holding rates seems like a reasonable answer too. The product's value is closely tied to customer retention, no?

upvoted 0 times

Lorriane

D) withdrawal provisions can also impact the overall value of the product.

upvoted 0 times

...

Izetta

1 days ago

C) implicit interest rates play a significant role in the accumulation of account value.

upvoted 0 times

...

Yoko

9 days ago

A) profit margins are also important for determining the value of the product.

upvoted 0 times

...

Destiny

2 months ago

But don't you think implicit interest rates also play a significant role in determining the value of these products?

upvoted 0 times

...

Armando

2 months ago

I think the answer is C) implicit interest rates. That's the most direct value-based requirement in account value accumulation products.

upvoted 0 times

Enola

8 days ago

Withdrawal provisions are also important to consider when looking at value-based requirements.

upvoted 0 times

...

Ruby

9 days ago

I agree, implicit interest rates are crucial for account value accumulation products.

upvoted 0 times

...

Azzie

12 days ago

Withdrawal provisions are also important to consider when looking at value-based requirements.

upvoted 0 times

...

Kindra

1 months ago

I agree, implicit interest rates are crucial for account value accumulation products.

upvoted 0 times

...

Penney

2 months ago

I disagree, I believe it's policy holding rates that drive the value in account accumulation products.

upvoted 0 times

...

Destiny

2 months ago

I think the most direct value-based requirements arise from profit margins.

upvoted 0 times

...