AWMA Test Review 1 Questions and Answers – Updated 2024
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Course
Awma
Institution
Awma
AWMA Test Review 1 Questions and
Answers – Updated 2024
If ABC Corporation has net profits of $100,000 and distributes $50,000 as dividends, what is its
taxable income?
A. $0
B. $25,000
C. $50,000
D. $100,000 - Answer-The net profits of a corporation are subject to federal income
taxation...
increase each year. Equity REITs are appropriate when one objective is to provide an inflation
hedge
Mortgage REITs. - Answer✔✔-Mortgage REITs are similar to bond mutual funds, and make up
approximately 5.6% of the REIT market. No ownership interest in the underlying real estate
property exists. Instead, the fund invests in mortgages used by equity owners of the real estate
properties to finance their acquisition of the properties. Mortgage REITs may also invest in
GNMA. pools or other mortgage backed securities. They generally do not participate in capital
gains on the sale of real estate properties, but their income is higher than that of equity REITs.
Mortgage REITs do not provide inflation
protection.
Which one of the following is an advantage of equity REITs over mortgage REITs? - Answer✔✔-
Equity REITs can participate in the appreciation of the underlying properties.
Equity REITs own the underlying real estate properties, giving the owners an opportunity to
participate in the net cash flows from the operation of the properties and in any appreciation in
the market price of the properties.
- Answer✔✔-The intent of Dodd-Frank was to "harmonize" and blend fiduciary rules that would
pertain to both broker-dealers and investment advisers. Investment advisers are held to a
fiduciary standard and broker-dealers to a suitability standard under the current rules
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