The market in which the reporting entity would sell the asset or transfer the liability with the greatest volume and level of activity for the asset or liability is known as:
A. Transfer market
B. Transport market
C. Principal market
D. Turn-around market
The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date is called:
A. face value
B. fair value
C. market value
D. transaction value
is the price in a hypothetical transaction at the measurement date in the market in which the reporting entity would transact for the asset or liability
A. Feasible financial price
B. Asset/Liability price
C. Principal price
D. Exchange price
The evaluation and subsequent purchase or sale of investments is based on the judgment of the entity's investment and finance committees.
A. True
B. False
Insurance entities usually write covered-call options because they consider the premium received for writing the options to be either:
A. an economic hedge between a decline in market price and security
B. a decrease in yield on the underlying risk security
C. Both A and B
D. Neither A nor B
What encompasses investment income and gains and losses, as well as custody of investment and recordkeeping?
A. Valuation data
B. Verification note
C. Transaction cycle
D. Investment evaluation
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
The options for securities that insurance entities own and can deliver if the options are exercised by the option buyers are called:
A. concealed transactions
B. covered-call options
C. financial servicing
D. safekeeping
When securities repurchased under repos commonly have a principal amount that differs from principal amount of the security originally sold under the agreement, is known as:
A. Splintering act
B. Breakage
C. Rollover
D. None of the above
National Association of Insurance Commissioners stated that, has no effect on the valuation of securities for statutory accounting purposes, provided the amount of the collateral at least equals the required collateral.
A. Safety act
B. Investment security
C. Insurance track
D. Securities lending
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