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AAMS Module Quizzes (1-10) exam questions with complete solutions 2024
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AAMS Module Quizzes (1-10) exam questions with complete solutions 2024
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AAMS Module Quizzes (1-10) examquestions with complete solutions 2024
What jare jthe jmajor jsteps jin jthe jasset jmanagement jprocess j- jANS✓✓-1. jgather
jdata
2. jestablish jgoals
3. janalyze jinformation
4. jmake jand jimplement jrecommendations
5. jmonitor
Stefan's jbusiness jplan jincludes jthe jfollowing jgoal: j"I jwill jcontact j50
jprospective jclients jand jdocument jthis jactivity jin jthe jCRM jfor jtracking
jpurposes." jWhich jprimary jelement jof ja jgood jgoal jis jmissing? j- jANS✓✓-This
jgoal jis jnot jtime-framed.
The jacronym jto jremember jfor jgoal jsetting jis jSMART, jwhich jstands jfor
jSpecific, jMeasurable, jAchievable, jRelevant, jand jTime-Framed. jThe jprimary jflaw
jin jthis jgoal jis jthat jit jis jnot jtime-framed. jBecause jit jis jnot jtime-framed, jit jis
jdifficult jto jtell jif jthis jis jachievable, jbut jit jis jcertainly jmeasurable jand jvery
jlikely jrelevant.
Which jone jof jthe jfollowing jis jnot jan jinvested jasset? j- jANS✓✓-180-day
jcertificate jof jdeposit
A jcertificate jof jdeposit jis ja jcash jequivalent jand jtherefore jshould jbe jlisted
junder jCash jand jCash jEquivalents.
Victoria jGregory's jfinancial jsituation jis jas jfollows:
Cash/cash jEquivalentsL j$15,000
Short jTerm jdebts: j$23,000
LTDs: j$140,000
Taxes: j$8000
Invested jAssets: j$45,000
Use jAssets: j$192,000
What jis jher jnet jworth? j- jANS✓✓-$89,000
Assets j= jCash/cash jequivalents j+ jInvested jassets j+ jUse jassets j($15,000 j+
j$45,000 j+ j$192,000 j= j$252,000). jLiabilities j= jShort-term jdebts j+ jLong-term
jdebts j($23,000 j+ j$140,000 j= j$163,000). jAssets j- jLiabilities j= jNet jWorth, jso
j$252,000 j- j$163,000 j= j$89,000.
Which jone jof jthe jfollowing jstatements jbest jdescribes jthe jincome jstatement
jand jits jmajor jcomponents? j- jANS✓✓-The jincome jstatement jindicates, jfor ja
,jcertain jperiod jof jtime, jan jindividual's jcash jinflows jand joutflows. jIts
jcomponents jinclude jgross jincome, jexpenses, jand jsurplus jor jdeficit.
The jincome jstatement jdescribes jcash jflow jfor ja jperiod jof jtime jand jcontains
jthe jcomponents jof jgross jincome, jfrom jwhich jexpenses jare jsubtracted jto
jdetermine jthe jsurplus jor jdeficit.
All jof jthe jfollowing jprovide ja jclearer jpicture jof jthe jclient's jneeds j- jANS✓✓-1.
janticipated jretirement jlifestyle
2. jbad jexperiences jw/ jparticular jinvestments
3. jsuccession jplanning jin jplace, jif jany, jfor ja jclient jinvolved jin jownership jof
jsmall jbusiness
Which jone jof jthe jfollowing jis jconsidered ja j"foundation" jgoal? j- jANS✓✓-
emergency jfund
An jemergency jfund jis ja j"foundation" jgoal jbecause jit jis jan jessential jgoal jfor
jsurvival jin jthe jevent jof ja jdramatic jlife jevent.
Which jone jof jthe jfollowing jis jthe jbetter jwritten jfinancial jgoal? j- jANS✓✓-to
jaccumulate j$15,000 jfor ja jboat jpurchase jin jtwo jyears
This jgoal jis jwell jwritten jbecause jit jcontains ja jspecific jdollar jamount jand ja
jspecific jtime jframe.
When janalyzing jinformation jgathered jfrom ja jclient, jwhich jof jthe jfollowing jare
jimportant jfactors jto jlook jfor? j- jANS✓✓-1. jmismatches jbetween jthe jcurrent
jinvestment jposition jor jresources jand jstated jgoals.
This jis jan jimportant jfactor jin jthe janalysis jstep. jAny jmismatches jbetween jthe
jclient's jgoals jand jthe jinvestment jvehicles jused jto jattain jthose jgoals jshould jbe
jhighlighted.
2. jthe jvalidity jof jthe jclient's jstated jgoals.
This jis jan jimportant jfactor jin jthe janalysis jstep. jIf jthe jclient's jgoals jare
junrealistic, jthis jproblem jneeds jto jbe jaddressed jimmediately.
3. jtax jproblems jthat jmight jbe jameliorated jthrough jinvestment jplanning.
This jis jan jimportant jfactor jin jthe janalysis jstep. jPotential jtax jproblems jshould
jbe jaddressed jas jpart jof jthe jinvestment jstrategy.
Marcia jSimpson jhas janalyzed jher jclient's jsituation jand jhas jconcluded jthat jher
jclient jwill jcome jshort jof jattaining jthe jamount jof jcapital jhe jwould jlike jto jhave
jby jthe jtime jhe jplans jto jretire. jThe jclient jis ja jlow jrisk jtaker jand jwill jhave
jlimited jfunds jfor jfuture jperiodic jinvestments. jBefore jmaking ja
jrecommendation, jMarcia jshould jdo jwhich jone jof jthe jfollowing? j- jANS✓✓-
Discuss jthe jproblem jand jask jthe jclient jto jclarify jhow jhe jwishes jto jadjust jhis
jaccumulation jgoal, jrisk jlevel, jor jperiodic jinvestments.
After jbeing jinformed jof jthe jvarious jconstraints, jimplications jof jtheir jdecisions,
jand jother joptions jthey jhave, jthe jclient jcan jchoose jto jmake jadjustments jwith
jwhich jhe jis jcomfortable.
,Which jof jthe jfollowing jis ja jmatter jthat jneeds jto jbe jclarified jbefore jmaking
jinvestment jrecommendations? j- jANS✓✓-1. jclient's jgoals
2. jrisk jparameters jof jthe jclient
3. jtime jhorizons jof jthe jgoals
Four jmain jattributes jof ja jgood jbusiness jplan j- jANS✓✓-1. jwritten jand jshared
jwith jsomeone jwho jhas jan jinterest jin jyour jsuccess
2. jinclude jrealistic jaction jsteps jand jpersonal jgoals
3. jprofessional jdevelopment jgoals
Which jof jthe jfollowing jis jthe jmore jimportant jfactor jin jestablishing jtrust jwith ja
jclient? j- jANS✓✓-demonstrating jprofessionalism jand jhonesty
Demonstrating jprofessionalism jand jhonesty jis jthe jmost jimportant jfactor jin
jestablishing jtrust jwith ja jclient.
What jare jthe jthree jcharacteristics jof ja jwell-defined jgoal? j- jANS✓✓-1. jpurpose
2. jspecific jdollar jamount
3. jdefined jtime jframe
Which jone jof jthe jfollowing jis ja jmismatch jbetween ja jclient's jtime jhorizon jand
jstated jgoal? j- jANS✓✓-A j55-year-old jclient jwith jno jcurrent jretirement jsavings
jsays jthat jsaving jfor jretirement jis jher jtop jpriority; jshe jplans jto jretire jat jage j62.
Seven jyears jis jnot jenough jtime jfor jthis jclient jto jamass jthe jprincipal jneeded jto
jsupport ja jretirement jperiod jof j15 jto j20 jyears j(or jlonger).
Managing jclient jexpectations jis jbest jachieved jthrough jwhich jof jthe jfollowing?
j- jANS✓✓-educate jthe jclient
Educating jyour jclients jis jthe jbest jway jto jhelp jset jand jmanage jtheir
jexpectations.
Who jultimately jmakes jthe jinvestment jdecision jin jthe jasset jmanagement
jprocess? j- jANS✓✓-the jclient
Which jone jof jthe jfollowing jis jnot jincluded jin jan jinvestment jpolicy jstatement? j-
jANS✓✓-which jsecurities jto jinclude jin jthe jportfolio
While jan jinvestment jpolicy jstatement jdetermines jwhich jtypes jof jsecurities jmay
jbe jincluded jin ja jportfolio, jit jdoes jNOT jmake jrecommendations jas jto jspecific
jsecurities jto jpurchase.
Which jone jof jthe jfollowing jtypes jof jinvestors jis jconcerned jwith jlosing jwhat jhe
jor jshe jhas jaccumulated jin jthe jpast? j- jANS✓✓-a jrisk-averse jinvestor
A jrisk-averse jinvestor jis jconcerned jwith jlosing jwhat jhe jor jshe jhas
jaccumulated jin jthe jpast.
Which jone jof jthe jfollowing jbest jdescribes jthe jpurpose jof jan jinvestment jpolicy
jstatement j(IPS)? j- jANS✓✓-to jprovide ja jfoundation jon jwhich jthe jclient's
, jportfolio jis jconstructed, jand jto jprovide ja jbasis jfor jreview jand jadaptation jto
jchanging jconditions
An jinvestment jpolicy jstatement's jprimary jpurpose jis jto jprovide jbroad
jguidelines jwith jwhich jto jestablish ja jfoundation jfor jportfolio jconstruction, jand
jto jprovide ja jbasis jfor jperiodic jreview.
Of jthe jfollowing, jwhich jone jdescribes ja jkey jattribute jof jan jinvestment jpolicy
jstatement? j- jANS✓✓-long-term jperspective—to jtake jadvantage jof jthe jpositive
jbias jin jthe jmarkets
A jkey jattribute jof jan jinvestment jpolicy jstatement jis jthat jit jshould jbe jcreated
jwith ja jlong-term jperspective jto juse jthe jpositive jbias jin jthe jmarkets jthat
joccurs jwith jthe jpassage jof jtime.
Time jis jof jcritical jimportance jin jan jinvestment jpolicy jstatement jbecause j-
jANS✓✓-it jdetermines jthe jfeasibility jof jthe jinvestment jprofessional jmaking
jrecommendations jthat jmeet jthe jclient's jgoals.
The jamount jof jtime javailable jfor ja jfinancial jgoal jdetermines jif jthe jinvestment
jprofessional jcan jmake jrecommendations jthat jwill jachieve jthat jgoal.
Which jof jthe jfollowing jis ja jkey jelement jthat jall jinvestment jpolicy jstatements
jshould jcontain? j- jANS✓✓-An jinvestment jpolicy jstatement jshould jinclude
jstatements jregarding jacceptable jinvestment jvehicles, jthe jportfolio's jasset
jallocation, jand jthe jclient's jrisk jtolerance jlevel.
The jasset jmanagement jprocess jcan jbe jused jto jadjust jto jchanges jin ja jclient's
jfinancial jsituation jby j- jANS✓✓-helping jthe jclient jto jignore jmarket j"noise."
The jasset jmanagement jprocess jis jdesigned jto jhelp jthe jclient jignore jmarket
jnoise jand jrespond jonly jto jsignificant jevents j(major jchanges jin jpersonal
jsituations jand jdiscontinuous jchanges jin jthe jmarkets).
Sara jWhite jbought ja jstock jthat jhas jsubsequently jdropped j50%. jShe jplans jto
jhold jon jto jthe jstock jin jthe jhopes jof jgetting jback jto jeven. jWhat jinvestor
jmistake jis jSara jmost jlikely jmaking? j- jANS✓✓-loss javersion
Loss javersion jis jthe jreluctance jto jtake jlosses jand jis jassociated jwith ja j"get-
even-itis" jmentality.
The jinvestment jpolicy jstatement jwould jmost jlikely jneed jto jbe jchanged jif jwhich
jof jthe jfollowing joccurred? j- jANS✓✓-The jinvestment jpolicy jstatement jwould
jmost jlikely jneed jto jbe jchanged jif ja jclient jexperienced ja jmajor jevent jin jhis jor
jher jlife. jExamples jof jsuch jchanges jwould jinclude jinheriting ja jlarge jamount jof
jmoney, jdivorcing ja jspouse, jand jtaking jan jearly jretirement jfrom jhis jor jher
jcompany.
Who jbears jthe jmain jresponsibility jfor jdecision jmaking jin jan jinvestment jpolicy
jstatement? j- jANS✓✓-the jclient
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