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AFE Exam Dumps - Accredited Financial Examiner

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Question # 4

According to Securities and Exchange Commission (SEC), “the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting shares, by contract, or otherwise” is called:

A.

Control

B.

Influence

C.

Activity

D.

Entitlement

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Question # 5

The organizations in which the ownership and control of operations are vested in the policyholders are known as:

A.

Private entities

B.

Public entities

C.

Reciprocal entities

D.

Mutual entities

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Question # 6

Asset and liability management is:

A.

An approach of matching assets and liabilities that requires a correct mix of long and short term investments.

B.

An approach of mix assets and liabilities in a financial statement that requires specific long and short term revenues.

C.

An approach of mix assets and liabilities in a financial statement that requires specific long and short term revenues.

D.

An approach of specific assets and liabilities in a financial statement that requires correct mix of long and short term revenues.

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Question # 7

What represent the ownership interests in the net assets of the subsidiary held by persons outside the controlling entities’ structure?

A.

External control

B.

Minority interests

C.

Permanent stockholder

D.

None of the above

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Question # 8

The financial statements of which accounts maintained by insurance company that must be presented separately from the insurance company’s general account business?

A.

Business

B.

Temporal

C.

Principal

D.

Segregated

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