CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

A higher discount rate ______ the PBO, ______ the VBO and ______ the ABO.
A. decreases, decreases, decreases.
B. decreases, does not affect, does not affect.
C. does not affect, increases, increases.
Explanation: The discount rate assumption has the greatest impact on the reported benefit obligation. A higher (lower) discount rate decreases (increases) the PBO, ABO and VBO.

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