100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
AAMS Practice Exam 2024/2025 with 100% correct answers $13.49   Add to cart
Quickly navigate to
Preview
  2.  
  3. AAMS Practice E
  4.  
  5. AAMS Practice E

Exam (elaborations)

AAMS Practice Exam 2024/2025 with 100% correct answers
 1 view  0 purchase
  • Course
  • AAMS Practice E
  • Institution
  • AAMS Practice E

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? correct answersVariable life insurance The...

[Show more]

Preview 2 out of 12  pages

Document information

  • November 2, 2024
  • 12
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

Written for

  • AAMS Practice E
  • AAMS Practice E

Seller

avatar-seller
QUILLSKY

Reviews received

Content preview

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? correct answersVariable 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 correct
answerscontrarian



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

Utilities$4,000

CD$15,000

Stock$125,000

Home equity loan$40,000



What is Bob's net worth? correct answers$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

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? correct answers$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?
correct answersLegally, suitability disputes are often resolved in arbitration whereas fiduciary disputes
are ultimately resolved in the courts.

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 QUILLSKY. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $13.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

72042 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
$13.49
  • (0)
  Add to cart