AAMS Exam 2025/2026 ACTUAL COMPREHENSIVE REAL
EXAM QUESTIONS WITH CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS ) ALREADY GRADED A+ /BRAND NEW
EXAM!!
Which one of these is least likely to lead to
ethical conflicts?
a) unrealistic client
expectations
b) reasonable
compensation
c) mismatch of client and investment
professional
d) monthly production quotas - ANSWER-reasonable
compensation
Which of these rates apply to net long-term capital gains from a
stock portfolio if
a taxpayer's taxable income places them in the 37%
marginal income tax
bracket? - ANSWER-
20%
,In a nonqualified brokerage account, corporate zero-coupon
bonds generate
annual
A) taxable
income.
B) tax-free
income.
C) tax-deferred
income.
D) passive income. - ANSWER-taxable
income
Which one of these is NOT a motivating factor to engage in a
bond swap?
a) to reduce risk by selling a bond with a higher duration and
buying a similar bond with a lower duration
b) to increase yield by selling one bond and buying another of
similar characteristics but with a slightly higher yield
c) to change the average maturity of a portfolio
d) to lock in a tax loss by selling a bond at a loss and then
immediately repurchasing the same bond - ANSWER-to lock
in a tax loss by selling a bond at a loss and then immediately
repurchasing the same bond
,Income from a Treasury bond is
exempt from
A) state and local
taxation.
B) federal
taxation.
C) federal, state, and local
taxation.
D) federal and local taxation. - ANSWER-state and
local taxation
Cash value life insurance policies build cash value on what
type of basis? -
ANSWER-tax-
deferred
A REIT does not have to pay taxes provided it distributes
at least what
percentage of its taxable income? -
ANSWER-90%
A person's marginal income tax rate equals the rate of tax
paid on the -
ANSWER-last dollar of
income
, With respect to a MEC, all of these constitute a
distribution, EXCEPT:
a) dividends used to purchase paid-up
insurance
b) a loan taken as cash to pay
premiums
c) dividends received as cash or used to
pay a loan
d) a withdrawal - ANSWER-dividends used to purchase
paid-up insurance
What is the lowest marginal tax rate for a taxpayer? - ANSWER-
10%
Life insurance proceeds paid to beneficiaries are generally: -
ANSWER-tax-free
What portion of the payments received from mortgage-
backed securities is
subject to taxation? - ANSWER-
interest portion
Based on the 2008 Aon Consulting Worldwide study cited in
the module, a
EXAM QUESTIONS WITH CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS ) ALREADY GRADED A+ /BRAND NEW
EXAM!!
Which one of these is least likely to lead to
ethical conflicts?
a) unrealistic client
expectations
b) reasonable
compensation
c) mismatch of client and investment
professional
d) monthly production quotas - ANSWER-reasonable
compensation
Which of these rates apply to net long-term capital gains from a
stock portfolio if
a taxpayer's taxable income places them in the 37%
marginal income tax
bracket? - ANSWER-
20%
,In a nonqualified brokerage account, corporate zero-coupon
bonds generate
annual
A) taxable
income.
B) tax-free
income.
C) tax-deferred
income.
D) passive income. - ANSWER-taxable
income
Which one of these is NOT a motivating factor to engage in a
bond swap?
a) to reduce risk by selling a bond with a higher duration and
buying a similar bond with a lower duration
b) to increase yield by selling one bond and buying another of
similar characteristics but with a slightly higher yield
c) to change the average maturity of a portfolio
d) to lock in a tax loss by selling a bond at a loss and then
immediately repurchasing the same bond - ANSWER-to lock
in a tax loss by selling a bond at a loss and then immediately
repurchasing the same bond
,Income from a Treasury bond is
exempt from
A) state and local
taxation.
B) federal
taxation.
C) federal, state, and local
taxation.
D) federal and local taxation. - ANSWER-state and
local taxation
Cash value life insurance policies build cash value on what
type of basis? -
ANSWER-tax-
deferred
A REIT does not have to pay taxes provided it distributes
at least what
percentage of its taxable income? -
ANSWER-90%
A person's marginal income tax rate equals the rate of tax
paid on the -
ANSWER-last dollar of
income
, With respect to a MEC, all of these constitute a
distribution, EXCEPT:
a) dividends used to purchase paid-up
insurance
b) a loan taken as cash to pay
premiums
c) dividends received as cash or used to
pay a loan
d) a withdrawal - ANSWER-dividends used to purchase
paid-up insurance
What is the lowest marginal tax rate for a taxpayer? - ANSWER-
10%
Life insurance proceeds paid to beneficiaries are generally: -
ANSWER-tax-free
What portion of the payments received from mortgage-
backed securities is
subject to taxation? - ANSWER-
interest portion
Based on the 2008 Aon Consulting Worldwide study cited in
the module, a
