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

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Lino

1 months ago

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

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Daron

14 days ago

A) profit margins

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Curtis

1 months ago

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

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Desire

1 months ago

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

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Lina

9 days ago

A) profit margins can impact the overall value of the account.

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Leana

16 days ago

C) implicit interest rates are also important to consider when looking at account value accumulation products.

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Goldie

1 months 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?

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Lorriane

16 days ago

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

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Izetta

17 days ago

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

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Yoko

25 days ago

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

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Destiny

2 months ago

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

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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.

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Enola

24 days ago

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

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Ruby

25 days ago

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

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Azzie

27 days ago

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

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Kindra

2 months ago

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

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Penney

2 months ago

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

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Destiny

2 months ago

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

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