SOFE AFE Exam Dumps

Get All Accredited Financial Examiner Exam Questions with Validated Answers

AFE Pack
Vendor: SOFE
Exam Code: AFE
Exam Name: Accredited Financial Examiner
Exam Questions: 286
Last Updated: November 20, 2025
Related Certifications: Accredited Financial Examiner
Exam Tags: Financial Management Foundational level Insurance ProfessionalsFinancial Analysts
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Free SOFE AFE Exam Actual Questions

Question No. 1

The balloon payment technique uses level payments of principal and interest but for a shorter period than is required to retire the loan fully during its term. For example, a loan with a 8.5 percent interest rate utilizing a 25-year amortization schedule with a 7-year maturity results in only $111 of each $l,000 principal being repaid. Thus, $889 of each $l,000 originally borrowed constitutes the balloon amount due at maturity.

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Correct Answer: A

Question No. 2

The establishment of loss reserves generally requires considerable judgment and knowledge of the entity's business is known as:

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Correct Answer: C

Question No. 3

A holistic analysis in a multi-scenario framework of all significant factors that can affect an insurer's future financial condition is called:

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Correct Answer: B

Question No. 4

Internal Control is:

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Correct Answer: A

Question No. 5

The difference between the purchase price and the repurchase price, or sale price, plus accrued interest on the security represents:

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Correct Answer: B

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