Question

What determines the extent to which margins against adverse future experience are required?

a.

The application or purpose of the basis

b.

Short-term financial stability

c.

Immediate financial gains

d.

Short-term assumptions

Answer: (a).The application or purpose of the basis Explanation:The extent to which margins against adverse future experience are required depends greatly on the application or purpose of the basis being used for assumption setting.

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Q. What determines the extent to which margins against adverse future experience are required?

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