Module: | Primary Categories & SPPI Rules
Q7: Which of the following is a mandatory condition for classifying a security under the Available for Sale (AFS) category?
✅ Correct Answer: B
The defining characteristic of the Available for Sale (AFS) category is the "dual objective" business model.
To qualify, a security must be acquired with an objective that is achieved by both collecting contractual cash flows and selling the securities, a distinction vital for solving Investment Classification MCQs.
To qualify, a security must be acquired with an objective that is achieved by both collecting contractual cash flows and selling the securities, a distinction vital for solving Investment Classification MCQs.