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AAMS Practice Exam | Questions & Answers (100 %Score) Latest Updated 2024/2025 Comprehensive Questions A+ Graded Answers | With Expert Solutions CA$18.83   Add to cart
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AAMS Practice Exam | Questions & Answers (100 %Score) Latest Updated 2024/2025 Comprehensive Questions A+ Graded Answers | With Expert Solutions
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AAMS Practice Exam | Questions & Answers (100 %Score) Latest Updated 2024/2025 Comprehensive Questions A+ Graded Answers | With Expert Solutions

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  • August 8, 2024
  • 12
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • aams practice exam questions answers 100 sco

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  • AAMS
  • AAMS

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VasilyKichigin

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AAMS Practice Exam | Questions & Answers (100 %Score) Latest Updated 2024/2025
Comprehensive Questions A+ Graded Answers | With Expert Solutions


An employer plans to use corporate-owned life insurance to informally fund a nonqualified deferred
compensation agreement and wants flexibility regarding investment choices. Which one of the following
types of life insurance should this employer choose? - Variable life insurance



The latest economic reports have been gloomy, and the stock market is in a protracted slump. Most of
your regular stock customers are selling out their positions. A new client, Mr. Jones, sees these
conditions as a buying opportunity. You would define his investment personality as - contrarian



As of December 31, 20X1, Bob Larkin has the following financial data:



Bond fund $17,000

Residence$400,000

Vested 401(k) plan$95,000

Auto notes$16,000

Residence mortgage$285,000

Auto payments$7,000

Automobiles$45,000

Checking account$8,000

Utilities$4,000

CD$15,000

Stock$125,000

Home equity loan$40,000



What is Bob's net worth? - $364,000



Assets = $17,000 + $400,000 + $95,000 +$45,000 + $8,000 + $15,000 + $125,000 = $705,000. Liabilities =
$16,000 + $285,000 + $40,000 = $341,000, so net worth is $364,000. Notice that auto notes of $16,000
are included in this calculation, but auto payments of $7,000 is a cash flow item and therefore not
included.

, For the year ending December 31, 20X2, Ted Jones has the following financial information:



Salaries$70,000

Auto payments$5,000

Insurance$3,800

Food$8,000

Credit card balance$10,000

Dividends$1,100

Utilities$3,500

Mortgage payments$14,000

Taxes$13,000

Clothing$9,000

Interest income$2,100

Checking account$4,000

Vacations$8,400

Donations$5,800



What is the surplus or (deficit) for Ted? - $2,700



Income = $70,000 + $1,100 + $2,100 = $73,200. Expenses = $5,000 + $3,800 + $8,000 + $3,500 + $14,000
+ $13,000 + $9,000 + $8,400 + $5,800 = $70,500, so there is a surplus of $2,700



Which one of the following statements comparing the suitability and fiduciary standards is correct? -
Legally, suitability disputes are often resolved in arbitration whereas fiduciary disputes are ultimately
resolved in the courts.



Which one of the following types of distributions from a qualified retirement plan may be subject to
mandatory 20% withholding? - indirect rollover

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