CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

A lower rate of compensation increase ______ the PBO, ______ the VBO and ______ the ABO.
A. decreases, decreases, decreases.
B. increases, does not affect, does not affect.
C. decreases, does not affect, does not affect.
Explanation: The assumed rate of compensation increase affects the PBO only. A higher (lower) rate increases (decreases) the PBO. The assumed rate is zero for non-pay-related plans.

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