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AAMS Practice Exam questions with complete solutions 2024
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AAMS Practice Exam questions with complete solutions 2024
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AAMS Practice Exam questions withcomplete solutions 2024
An jemployer jplans jto juse jcorporate-owned jlife jinsurance jto jinformally jfund ja
jnonqualified jdeferred jcompensation jagreement jand jwants jflexibility jregarding
jinvestment jchoices. jWhich jone jof jthe jfollowing jtypes jof jlife jinsurance jshould
jthis jemployer jchoose? j- jANS✓✓-Variable jlife jinsurance
The jlatest jeconomic jreports jhave jbeen jgloomy, jand jthe jstock jmarket jis jin ja
jprotracted jslump. jMost jof jyour jregular jstock jcustomers jare jselling jout jtheir
jpositions. jA jnew jclient, jMr. jJones, jsees jthese jconditions jas ja jbuying
jopportunity. jYou jwould jdefine jhis jinvestment jpersonality jas j- jANS✓✓-
contrarian
As jof jDecember j31, j20X1, jBob jLarkin jhas jthe jfollowing jfinancial jdata:
Bond jfund j$17,000
Residence$400,000
Vested j401(k) jplan$95,000
Auto jnotes$16,000
Residence jmortgage$285,000
Auto jpayments$7,000
Automobiles$45,000
Checking jaccount$8,000
Utilities$4,000
CD$15,000
Stock$125,000
Home jequity jloan$40,000
What jis jBob's jnet jworth? j- jANS✓✓-$364,000
Assets j= j$17,000 j+ j$400,000 j+ j$95,000 j+$45,000 j+ j$8,000 j+ j$15,000 j+ j$125,000
j= j$705,000. jLiabilities j= j$16,000 j+ j$285,000 j+ j$40,000 j= j$341,000, jso jnet jworth
jis j$364,000. jNotice jthat jauto jnotes jof j$16,000 jare jincluded jin jthis jcalculation,
jbut jauto jpayments jof j$7,000 jis ja jcash jflow jitem jand jtherefore jnot jincluded.
For jthe jyear jending jDecember j31, j20X2, jTed jJones jhas jthe jfollowing jfinancial
jinformation:
Salaries$70,000
Auto jpayments$5,000
, Insurance$3,800
Food$8,000
Credit jcard jbalance$10,000
Dividends$1,100
Utilities$3,500
Mortgage jpayments$14,000
Taxes$13,000
Clothing$9,000
Interest jincome$2,100
Checking jaccount$4,000
Vacations$8,400
Donations$5,800
What jis jthe jsurplus jor j(deficit) jfor jTed? j- jANS✓✓-$2,700
Income j= j$70,000 j+ j$1,100 j+ j$2,100 j= j$73,200. jExpenses j= j$5,000 j+ j$3,800 j+
j$8,000 j+ j$3,500 j+ j$14,000 j+ j$13,000 j+ j$9,000 j+ j$8,400 j+ j$5,800 j= j$70,500, jso
jthere jis ja jsurplus jof j$2,700
Which jone jof jthe jfollowing jstatements jcomparing jthe jsuitability jand jfiduciary
jstandards jis jcorrect? j- jANS✓✓-Legally, jsuitability jdisputes jare joften jresolved
jin jarbitration jwhereas jfiduciary jdisputes jare jultimately jresolved jin jthe jcourts.
Which jone jof jthe jfollowing jtypes jof jdistributions jfrom ja jqualified jretirement
jplan jmay jbe jsubject jto jmandatory j20% jwithholding? j- jANS✓✓-indirect jrollover
Which jone jof jthe jfollowing jstatements jregarding ja jqualified jplan jis jcorrect? j-
jANS✓✓-The jemployer's jdeduction jis javailable jin jthe jyear jthat ja jcontribution jis
jmade.
All jof jthe jfollowing jshould jbe jagreed jupon jbetween jthe jclient jand jthe
jinvestment jprofessional jwhen jmaking jrecommendations jbased jon jan
jinvestment jpolicy jstatement jEXCEPT j- jANS✓✓-specific jinvestments.
Which jof jthe jfollowing jhas ja jdirect jbearing jon jwhich jinvestments jare
jappropriate jfor jachieving ja jgoal? j- jANS✓✓-the jinvestor's jtime jhorizon
One jpurpose jof jan jinvestment jpolicy jstatement jis jto j- jANS✓✓-provide
jguidelines jaround jwhich jthe jportfolio jis jto jbe jconstructed jand jmanaged.
Which jof jthe jfollowing jare jelements jof jany jinvestment jpolicy jstatement?
I. jthe jclient's jinvestment jgoal
II. jsuitable jand junsuitable jinvestment jvehicles
III. jan jacceptable jrisk jlevel
IV. ja jprovision jfor jperiodic jreview j- jANS✓✓-D)
I, jII, jIII, jand jIV
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