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AAMS Practice 2 Exam Questions And Answers
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AAMS Practice 2 Exam Questions AndAnswers
c - correct answer ✅Which of the following is a false statement
regarding a good business plan? The plan
A) is in writing.
B) includes actionable steps.
C) should only contain business goals.
D) is shared with a mentor.
c - correct answer ✅Jim Hanson's financial situation is as follows:
Savings account$5,000
Life insurance cash value$20,000
Short-term debts$3,000
Mortgage loan$100,000
Auto loan$10,000
Tuition payments$17,000
Auto loan payments$3,000
Mortgage loan payments$9,600
Invested assets$40,000
Use assets$220,000
,AAMS Practice 2 Exam Questions And
Answers
A) $127,000
B) $132,000
C) $172,000
D) $182,000
What is his net worth?
b - correct answer ✅As of December 31, 20X1, Bill Simpson has the
following financial data:
Salaries$90,000
Investment income$4,000
Mortgage payments$16,000
Insurance$3,000
Auto notes$20,000
Income taxes$25,000
Auto payments$6,000
Medical/dental$4,000
Misc.expenses$15,000
Utilities$3,000
CD$5,000
,AAMS Practice 2 Exam Questions And
Answers
Education$10,000
Food$8,000
What is Bill's surplus or deficit?
A)$14,000
B)$4,000
C)$1,000
D)$7,000
b - correct answer ✅Which one of the following is the most correctly
formulated goal for a client?
A) invest $500 monthly using a dollar cost averaging strategy to increase
net worth
B) accumulate $50,000 in seven years for a son's education
C) accumulate $50,000 for a second home
D) build enough net worth to retire in 15 years
d - correct answer ✅Which one of the following is most accurate with
respect to the life insurance needs of the typical family?
, AAMS Practice 2 Exam Questions And
Answers
A) The need for insurance to cover both final expenses and lost income
decreases at age 70.
B) Life insurance generally allows families to reduce their income
taxation exposures.
C) The need for life insurance remains steady until age 65.
D) Total life insurance requirements may decrease as an individual
approaches retirement.
d - correct answer ✅Upon retirement, the bulk of a client's assets
generally should be invested in
A) derivatives and other alternative investment for above-average
short-term gains.
B) fixed-income investments for current income and safety of principal.
C) money market funds for maximum safety of principal.
D) growth investments to preserve purchasing power.
a - correct answer ✅One of the primary purposes of an investment
policy statement is to
A) provide a basis for portfolio review.
B) project market returns for the portfolio.
C) separate the role of the client and the investment professional.
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