AWMA Exam 2
Of the following practical dimensions of emotional intelligence, which is the most complex and difficult
to attain?
A)Regulation of adviser and/or client emotions
B)Integration of emotional intelligence into thinking
C)Perception and differentiation between emotions
D)Understanding and explanation of the emotions - correct answer ✔✔A) Individuals who score highly
on the main dimensions of EI are able to perceive and differentiate between emotions, integrate this
information into thinking, accurately understand and explain the emotions, and regulate their own and
other's emotions, all while anticipating and managing their responses to other's emotional displays. The
ability to perform well in one dimension is dependent upon one's abilities in the other dimensions, with
emotional perception being the least complex and emotional regulation being the most complex. Mod 1
Warning signs of possible elder abuse of a client include
A)having solid powers of attorney.
B) having dementia.
C) sudden happiness with a new friend.
D) someone isolating the client from family and friends. - correct answer ✔✔D) A planner should be
savvy to the following warning signs of elder abuse: signs of dementia and/or confusion with
questionable or no powers of attorney granted; someone isolating the client from family and friends;
and irritability and/or depression. Dementia can be present without the client being a victim of fraud;
this still requires family or planner intervention. Mod 1
Which one of the following is most correct concerning high net worth client discussions about finances
with their children?
A) Most millennials express that the best time to introduce children to the financial adviser is under age
12.
B) About 60% of high net worth clients have not yet talked to their children about their wealth.
,C) Most high net worth individuals do not plan to ever talk to their children about their wealth.
D) Most baby boomers say it does not matter when children are introduced to a financial adviser. -
correct answer ✔✔A) A Northern Trust survey found that 26% of wealthy individuals have not yet talked
to their children about wealth and some (not most) do not plan to ever do so. A Spectrem study shows
that 54% of millennials say that under age 12 is the best age to introduce a financial planner. Considering
the average of all demographic categories, and that of baby boomers, the ages 18 to 25 group was found
to be the ideal time to introduce a financial adviser. Mod 1
Which one of the following is most important in establishing trust with a client?
A) Being associated with a good financial company
B)Having a pleasant manner
C)Demonstrating professional knowledge
D)Being genuine and following best practices - correct answer ✔✔D) Being genuine and following best
practices are two of the most important factors in establishing trust with a client. Mod 1
Which one of the following is a question that a wealth adviser could best pose to clients when starting a
conversation about family matters?
A)Do you exclude family members from learning about or participating in decisions related to the
family's business or wealth?
B)Do you fight when the family communicates about wealth matters?
C)Are there any major transitions that are important?
D)What steps has the family taken to ensure that family members are financially fluent and well
positioned to serve as responsible stewards of wealth? - correct answer ✔✔D) When starting a discourse
with a wealthy client, the questions about family matters should be open-ended and not leading clients
to answer a certain way. Mod 1
Which one of the following is a regulation that allows members to put a temporary hold on
disbursements from an elder account if elder abuse is suspected?
A)Elder Justice Initiative
B) FINRA Rule 4512
, C) FINRA Rule 2165
D) Senior Safe Act - correct answer ✔✔C) FINRA Rule 2165 goes beyond the Senior Safe Act in not only
detecting financial abuse, but allowing an adviser to put a temporary hold (up to 25 days) on
disbursements from an elder account (over 65) if financial abuse is suspected to be present or
commencing. FINRA Rule 4512 requires financial advisers to make a "reasonable effort" to collect the
name of a "trusted contact person." The Elder Justice Initiative supports and coordinates the
Department of Justice's enforcement and programmatic efforts to combat elder abuse, neglect, and
financial fraud and scams. Mod 1
When the personal circumstances of a client change, to which wealth management step does the
investment professional return?
A)Data gathering and goal establishment
B)Analyzing and evaluating the client's financial status
C)Monitoring financial planning recommendations
D)Implementing financial planning recommendations - correct answer ✔✔A) In Step 2 of the wealth
adviser financial planning process, advisers discover client goals and gather financial data about the
client. If there is a major event in the client's life, then planners should come back to this goal-setting,
data-gathering step. Mod 1
Compared to those planners working alone, advisers working with a team generally have
A)more assets under management but less revenue.
B)more assets under management and more revenue.
C) fewer assets under management but more revenue.
D)fewer assets under management and less revenue. - correct answer ✔✔B) Teamwork is a bonus for
advisers, who, when compared to sole practitioners, generally have deeper client relationships, generate
more assets and revenue, have lower attrition, and have a higher fee-based ratio. Mod 1
When working in a team at a financial institution, which one of the following is something an adviser
would likely not do?
A)Implement client recommendations
Of the following practical dimensions of emotional intelligence, which is the most complex and difficult
to attain?
A)Regulation of adviser and/or client emotions
B)Integration of emotional intelligence into thinking
C)Perception and differentiation between emotions
D)Understanding and explanation of the emotions - correct answer ✔✔A) Individuals who score highly
on the main dimensions of EI are able to perceive and differentiate between emotions, integrate this
information into thinking, accurately understand and explain the emotions, and regulate their own and
other's emotions, all while anticipating and managing their responses to other's emotional displays. The
ability to perform well in one dimension is dependent upon one's abilities in the other dimensions, with
emotional perception being the least complex and emotional regulation being the most complex. Mod 1
Warning signs of possible elder abuse of a client include
A)having solid powers of attorney.
B) having dementia.
C) sudden happiness with a new friend.
D) someone isolating the client from family and friends. - correct answer ✔✔D) A planner should be
savvy to the following warning signs of elder abuse: signs of dementia and/or confusion with
questionable or no powers of attorney granted; someone isolating the client from family and friends;
and irritability and/or depression. Dementia can be present without the client being a victim of fraud;
this still requires family or planner intervention. Mod 1
Which one of the following is most correct concerning high net worth client discussions about finances
with their children?
A) Most millennials express that the best time to introduce children to the financial adviser is under age
12.
B) About 60% of high net worth clients have not yet talked to their children about their wealth.
,C) Most high net worth individuals do not plan to ever talk to their children about their wealth.
D) Most baby boomers say it does not matter when children are introduced to a financial adviser. -
correct answer ✔✔A) A Northern Trust survey found that 26% of wealthy individuals have not yet talked
to their children about wealth and some (not most) do not plan to ever do so. A Spectrem study shows
that 54% of millennials say that under age 12 is the best age to introduce a financial planner. Considering
the average of all demographic categories, and that of baby boomers, the ages 18 to 25 group was found
to be the ideal time to introduce a financial adviser. Mod 1
Which one of the following is most important in establishing trust with a client?
A) Being associated with a good financial company
B)Having a pleasant manner
C)Demonstrating professional knowledge
D)Being genuine and following best practices - correct answer ✔✔D) Being genuine and following best
practices are two of the most important factors in establishing trust with a client. Mod 1
Which one of the following is a question that a wealth adviser could best pose to clients when starting a
conversation about family matters?
A)Do you exclude family members from learning about or participating in decisions related to the
family's business or wealth?
B)Do you fight when the family communicates about wealth matters?
C)Are there any major transitions that are important?
D)What steps has the family taken to ensure that family members are financially fluent and well
positioned to serve as responsible stewards of wealth? - correct answer ✔✔D) When starting a discourse
with a wealthy client, the questions about family matters should be open-ended and not leading clients
to answer a certain way. Mod 1
Which one of the following is a regulation that allows members to put a temporary hold on
disbursements from an elder account if elder abuse is suspected?
A)Elder Justice Initiative
B) FINRA Rule 4512
, C) FINRA Rule 2165
D) Senior Safe Act - correct answer ✔✔C) FINRA Rule 2165 goes beyond the Senior Safe Act in not only
detecting financial abuse, but allowing an adviser to put a temporary hold (up to 25 days) on
disbursements from an elder account (over 65) if financial abuse is suspected to be present or
commencing. FINRA Rule 4512 requires financial advisers to make a "reasonable effort" to collect the
name of a "trusted contact person." The Elder Justice Initiative supports and coordinates the
Department of Justice's enforcement and programmatic efforts to combat elder abuse, neglect, and
financial fraud and scams. Mod 1
When the personal circumstances of a client change, to which wealth management step does the
investment professional return?
A)Data gathering and goal establishment
B)Analyzing and evaluating the client's financial status
C)Monitoring financial planning recommendations
D)Implementing financial planning recommendations - correct answer ✔✔A) In Step 2 of the wealth
adviser financial planning process, advisers discover client goals and gather financial data about the
client. If there is a major event in the client's life, then planners should come back to this goal-setting,
data-gathering step. Mod 1
Compared to those planners working alone, advisers working with a team generally have
A)more assets under management but less revenue.
B)more assets under management and more revenue.
C) fewer assets under management but more revenue.
D)fewer assets under management and less revenue. - correct answer ✔✔B) Teamwork is a bonus for
advisers, who, when compared to sole practitioners, generally have deeper client relationships, generate
more assets and revenue, have lower attrition, and have a higher fee-based ratio. Mod 1
When working in a team at a financial institution, which one of the following is something an adviser
would likely not do?
A)Implement client recommendations
