100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
AAMS Practice Exam Questions and Answers (100% Pass) $10.49   Add to cart

Exam (elaborations)

AAMS Practice Exam Questions and Answers (100% Pass)

 17 views  0 purchase
  • Course
  • AAMS
  • Institution
  • AAMS

AAMS Practice Exam Questions and Answers (100% Pass) 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 emplo...

[Show more]

Preview 3 out of 18  pages

  • August 27, 2024
  • 18
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • AAMS
  • AAMS
avatar-seller
SophiaBennett
©SOPHIABENNETT@2024-2025 Monday, August 19, 2024 12:35 AM

AAMS Practice Exam Questions and Answers (100% Pass)


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? - Answer✔️✔️-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 - Answer✔️✔️-
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


Page 1 of 18

,©SOPHIABENNETT@2024-2025 Monday, August 19, 2024 12:35 AM

Checking account$8,000

Utilities$4,000

CD$15,000

Stock$125,000

Home equity loan$40,000



What is Bob's net worth? - Answer✔️✔️-$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

Page 2 of 18

, ©SOPHIABENNETT@2024-2025 Monday, August 19, 2024 12:35 AM

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? - Answer✔️✔️-$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? - Answer✔️✔️-Legally, suitability disputes
are often resolved in arbitration whereas fiduciary disputes are ultimately
resolved in the courts.

Page 3 of 18

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller SophiaBennett. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $10.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67866 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$10.49
  • (0)
  Add to cart