AAMS Module 1 Asset Management Process Questions and Answers (100% Pass)
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Course
AAMS
Institution
AAMS
AAMS Module 1 Asset Management Process
Questions and Answers (100% Pass)
Define the stages in the cycle of financial life that have surplus and deficit
periods. - Answer️️ -a. income surplus: the two periods when income
exceeds expenses—the "early working years" (before children) and the ...
AAMS Module 1 Asset Management Process
Questions and Answers (100% Pass)
Define the stages in the cycle of financial life that have surplus and deficit
periods. - Answer✔️✔️-a. income surplus: the two periods when income
exceeds expenses—the "early working years" (before children) and the "late
working years" (after children are through college and out of the house)
b. income deficit: the period when expenses outpace income; typically the
"family raising" years, when the client incurs the costs of raising a child,
buying a home or trading homes, and obtaining consumer credit
c. small surplus: the period, during retirement, when income slightly
exceeds expenses
Based on the financial cycle model, list two important forces that affect
how most clients live. - Answer✔️✔️-1 income
2 the financial requirements needed to maintain an adequate lifestyle
Describe five aspects that make up a client's investment personality. -
Answer✔️✔️-a. The client's willingness to take risk. The client's current
investments are often a useful guide. Risk-averse clients fear losing what
they have acquired; aggressive clients fear missing out on an opportunity
for potential gain.
b. The client's patience. Does the client think in terms of years, months, or
weeks? Will the client allow time to become an ally and work to his or her
advantage?
c. The client's ability to plan in advance. The existence of regular savings
and retirement accounts and established ties with tax planners and other
financial advisors provide evidence of the client's tendency to plan.
d. The client's willingness to share private, personal information. A client
who is distrustful of financial advisors will be reluctant to reveal anything
about his or her personal finances.
e. The client's market attitude. Is she a contrarian or a follower? The
follower is open to guidance from the media, friends, neighbors, and so
forth. The contrarian will do the opposite of what the crowd is doing.
Return to question.
Identify the major components of each of the following categories. -
Answer✔️✔️-a. cash/cash equivalents
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