Financial SOFA-CFE Exam
Certified Financial iner (Page 22 )

Updated On: 9-Feb-2026

Property-casualty insurance companies derive investment income from which of the following primary source?

  1. investment of shareholder capital
  2. investment of policyholder funds
  3. Both A and B
  4. neither A nor B

Answer(s): C



The price of money consists of which elements?

  1. intrinsic value of money
  2. inflation premium
  3. risk premium
  4. All of the above

Answer(s): D



In the financial community, unsecured promissory notes of corporations are known as:

  1. commercial paper
  2. risk-based factors
  3. risk premiums
  4. unrealistic bonds

Answer(s): A



What provide yields competitive with commercial paper, are interest-bearing instruments issued by banks?

  1. Money market
  2. Deposit-Draft
  3. Certificates of deposit
  4. Mutual funds

Answer(s): C



The bills that are sold at a discount to face value to yield the market rate over their life are called:

  1. Capital bills
  2. Treasury bills
  3. Collateralized bills
  4. Subsidiary bills

Answer(s): B






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