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AWMA EXAM 2 QUESTIONS WITH CORRECT ANSWERS
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AWMA EXAM 2 QUESTIONS WITH CORRECTANSWERS 2024-2025
Which of the practical components of emotional intelligence is the most complex
and difficult to achieve?
A) Emotional regulation for advisers and/or clients
B) Integrating emotional intelligence into thinking.
C) Perception and distinction of emotions
D) Understanding and explanation of emotions - ANSWER A) People who perform
well on the main dimensions of EI can perceive and differentiate between
emotions, integrate this information into their thinking, accurately understand and
explain emotions, and regulate their own and others' emotions, all while
anticipating and managing their reactions to other people's emotional displays. The
ability to function well in one dimension is determined by one's abilities in the
other dimensions, with emotional perception being the least difficult and emotional
regulation being the most complex. Mod 1
Warning flags of potential elder abuse in a client include:
A)Having valid powers of attorney.
B) has dementia.
C) unexpected happiness with a new friend.
D) Someone is isolating the person from family and friends. - ANSWER D) A
planner should be aware of the following warning indicators of elder abuse:
dementia and/or confusion, questionable or no powers of attorney, someone
isolating the client from family and friends, and irritation and/or depression.
,Dementia can exist without the client being a victim of fraud; nonetheless, this
requires family or planner engagement. Mod 1
Which of the following is correct about high net worth clients discussing finances
with their children?
A) According to the majority of millennials, the optimal time to introduce children
to a financial consultant is when they are under the age of 12.
B) Approximately 60% of high-net-worth clients have not discussed their wealth
with their children.
C) The majority of high-net-worth adults never intend to discuss their riches with
their children.
D) The majority of baby boomers believe it does not matter when children are
exposed to a financial consultant. - ANSWER A) According to a Northern Trust
survey, 26% of rich individuals have not yet discussed wealth with their children,
and some (but not the majority) do not intend to do so in the future. According to a
Spectrem study, 54% of millennials believe that introducing a financial planner
when they are under the age of 12 is ideal. Taking into account the average of all
demographic categories as well as baby boomers, the age bracket of 18 to 25 was
determined to be the best period to introduce a financial adviser. Mod 1
Which of the following is the most significant factor in building trust with a client?
A) Working with a good financial company.
B) Having a charming manner.
C) demonstrating professional knowledge.
,D)Being real and following best practices - ANSWER D) Being genuine and
adhering to best practices are two of the most significant components in building
trust with a client. Mod 1
Which of the following is the best question a wealth adviser might ask customers
when starting a talk regarding family matters?
A)Do you prevent family members from learning about or participating in choices
about the family's company or wealth?
B)Do you get into arguments when your family discusses money?
C) Are there any significant transitions?
D)What actions has the family made to ensure that family members are financially
literate and well-equipped to serve as responsible stewards of wealth? - ANSWER
D) When beginning a conversation with a wealthy client, questions about family
matters should be open-ended and not lead clients to a certain ANSWER. Mod 1
Which of the following is a regulation that allows members to temporarily suspend
disbursements from an elder account if elder abuse is suspected?
A) Elder Justice Initiative.
B) FINRA Rule 4512.
C) FINRA Rule 2165.
D) Senior Safe Act - ANSWER C) FINRA Rule 2165 goes further the Senior Safe
Act by permitting an adviser to place a temporary hold (up to 25 days) on
disbursements from an older account (over 65) if financial abuse is suspected or
occurring. FINRA Rule 4512 requires financial advisers to make a "reasonable
effort" to obtain the name of a "trusted contact person." The Elder Justice Initiative
, supports and coordinates the Department of Justice's enforcement and
programmatic efforts to combat elder abuse, neglect, financial fraud, and scams.
Mod 1
When a client's personal circumstances change, which wealth management action
does the investing expert take?
A)Data collecting and goal setting
B) Analyzing and appraising the client's financial situation.
C)Tracking financial planning recommendations
D)Implementing financial planning suggestions - ANSWER A) In Step 2 of the
wealth adviser financial planning process, advisers identify the client's goals and
collect financial information about the customer. If there is a significant event in
the client's life, planners should return to the goal-setting and data-gathering
process. Mod 1
Compared to planners working alone, advisers working with a team typically have
A) More assets under management but lower revenue.
B) More assets under management and revenue.
C) Fewer assets under management but higher revenue.
D) Fewer assets under management and lower revenue. - ANSWER B) Teamwork
benefits advisers, who, in comparison to lone practitioners, have stronger client
relationships, generate more assets and revenue, have lower attrition, and have a
higher fee-based ratio. Mod 1
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