AAMS Practice Exam- Questions with All Correct Answers [ Updated Version]
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Course
AAMS
Institution
AAMS
AAMS Practice Exam- Questions with All Correct Answers [ Updated Version]
AAMS Practice Exam- Questions with All Correct Answers [ Updated Version]
AAMS Practice Exam- Questions with All Correct Answers [ Updated Version]
AAMS Practice Exam
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
Which of the following will avoid probate at the owner's
death?
I. POD account
II. Tenancy by entirety
III. Funded inter vivos trust
IV. Joint tenancy with right of survivorship: I, II, III, and IV
Which statement regarding a Section 2503(b) trust is
CORRECT?: The beneficiary's right to trust income is a present
interest that qualifies for the annual exclusion.
Which one of the following is a characteristic of probate?:
Often a costly and complex process
,A nonspringing durable power of attorney: remains effective
after the principal becomes incapacitated.
The Investment Company Act of 1940 addresses which one
of the following?: the requirement that mutual funds must send
semiannual and annual reports to shareholders
If a taxpayer is in a 24% marginal and 20% average tax
bracket, making an additional $100 charitable contribution
will result in a: $24 decrease in taxes.
Which one of the following is a source of ethical conflict in
the securities industry?: unrealistic client expectations
For purposes of the generation-skipping transfer tax, a skip
person is: someone two or more generations younger than the
person who made the transfer.
You have just sold one of your customers some speculative
stocks without knowing her risk tolerance level. In which one
of the following ethical duties may you have failed your
customer?: duty to diagnose
, Which of the following estate planning tools would allow an
attorney-in-fact to expedite the principal's Medicaid
eligibility, arrange for in-home or nursing home care, hire
necessary health care personnel, or employ companions?:
Durable power of attorney
A trust that is created by a decedent's will and made
effective at death is a(n): testamentary trust.
Which of the following ethical duties are applicable in the
asset management process step of establishing financial
goals?
I. Diagnose
II. Professionalism
III. Keep current
Diligence: I and IVThe 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:
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