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AAMS All Modules exam review question and answers 2024 $14.49   Add to cart

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AAMS All Modules exam review question and answers 2024

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AAMS All Modules exam review question and answers 2024

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  • August 5, 2024
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  • 2024/2025
  • Exam (elaborations)
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  • AAMS All Modules
  • AAMS All Modules
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AAMS All Modules exam review question
and answers 2024
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

,AAMS All Modules exam review question
and answers 2024
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

,AAMS All Modules exam review question
and answers 2024
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

, AAMS All Modules exam review question
and answers 2024
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



Which one of the following statements regarding a qualified plan is correct? - The
employer's deduction is available in the year that a contribution is made.



All of the following should be agreed upon between the client and the investment
professional when making recommendations based on an investment policy
statement EXCEPT - specific investments.



Which of the following has a direct bearing on which investments are appropriate
for achieving a goal? - the investor's time horizon



One purpose of an investment policy statement is to - provide guidelines around
which the portfolio is to be constructed and managed.

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