AFE Exam Questions & Answers

Exam Code: AFE

Exam Name: Accredited Financial Examiner

Updated: Nov 12, 2024

Q&As: 286

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Practice These Free Questions and Answers to Pass the AFE Designation Exam

Questions 1

Duration is a measure of the first-order interest rate sensitivity of a financial instrument.

A. True

B. False

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Questions 2

A package of coverage including most property and liability coverage except workers' compensation, automobile insurance and surely bonds is called:

A. Single peril

B. Multiple peril

C. Property lines

D. professional property

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Questions 3

In which account current, for individual policies, the agent collects the premiums directly from the insureds, subtracts his or her commissions and remits the net premiums due to entity?

A. Billing basis

B. Paying commission basis

C. Item basis

D. Bushiness costs

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Questions 4

In a yield-maintenance agreement:

A. the securities repurchased may have a different stated interest rate from that of the securities sold and are generally priced to result in substantially the same yield.

B. the securities repurchased may have the same stated interest rate from that of the securities sold and are generally priced to result in substantially the same yield.

C. the securities repurchased may have a different stated interest rate from that of the securities sold and are generally priced to result in substantially the different yield.

D. the securities repurchased may have a same stated interest rate from that of the securities sold and are generally priced to result in substantially the different yield.

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Questions 5

What represent legal agreements between buyers or sellers and represent commitments to buy or sell financial instruments at specified dates and prices?

A. Future contracts

B. Present contracts

C. Accounting contracts

D. Financial contracts

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