AWMA EXAM 1 |2025-2026 LATEST UPDATED| 80 REAL EXAM AND
COMPLETE QUESTIONS AND ANSWERS | 100% RATED CORRECT |
100% VERFIED | ALREADY GRADED A+
Which one of the following characteristics is more correct concerning younger wealthy
individuals (millennials and GenXers)?
A) Younger wealthy individuals are seeking more technological options in financial planning.
B) Younger wealthy individuals have not experienced significant bear markets.
C) Younger wealthy individuals have directly opposite financial needs as compared to baby
boomers.
D) Younger wealthy individuals likely want to be advised by one of their own generation. -
(answer)A) Younger wealthy investors (millennials and GenXers) are seeking fresh approaches
to financial planning, including more technological options. In addition, young clients also have
been through fewer years of investing but have experienced several significant bear markets.
Mod 1
One of the most important life goals of wealthy individuals is
A) protecting wealth.
B) assuring their retirement lifestyle.
,C) minimizing taxes.
D) travelling the world. - (answer)D) The most frequently stated life goals for wealthy
individuals are having good health, travelling the world, and achieving financial success. To
achieve financial success, the most common financial goals are protecting wealth, assuring
retirement lifestyle, minimizing taxes, and leaving an estate to their heirs. Mod 1
One of the most important financial goals of wealthy individuals is
A)leaving an estate to their heirs.
B)having good health.
C)none of these.
D)travelling the world. - (answer)A) To achieve financial success, the most common financial
goals are protecting wealth, assuring retirement lifestyle, minimizing taxes, and leaving an estate
to their heirs. The most frequently stated life goals for wealthy individuals are having good
health, travelling the world, and achieving financial success. Mod 1
Which one of the following statements is true regarding sustainable and responsible investments
(SRIs)?
A) Shareholder activism is a part of SRIs.
,B) Baby boomers are the most likely demographic to invest in SRIs.
C) SRIs provide lower returns, but are a "feel-good" option for investors.
D) SRIs provide only a negative filter of staying away from certain assets. - (answer)A)
Shareholder activism also plays a part in getting companies to listen by passing shareholder
resolutions. Sustainable and responsible investing has been found to be of importance to Gen
Xers and millennials. Several studies have now shown taking into account ESG factors actually
increases long-term returns. For SRI investments, the adviser needs to set up a series of filters to
determine a client's specific wants for a sustainable fund. For instance, tobacco may be a main
prohibition for one client, while religious aspects may be a positive filter for that same or another
client. Mod 1
Concerning control of assets in a private foundation versus a donor-advised fund, which one of
the following aspects is true for a donor-advised fund?
A)Remains with founder's values
B) Needs lengthy IRS approval
C) Easier and less expensive to launch
D) Must pay out a certain percentage each year - (answer)C) Donor-advised funds (DAFs) are
growing in popularity and have the advantage of being easier and cheaper to launch and not
requiring the lengthy IRS approval that private foundations need. Values may change with a
, DAF, as major contributors have input into this type of charitable fund. In addition, only private
foundations must make payouts each year; DAFs have flexibility with this. Mod 1
If a high net worth (HNW) business owner came to your office, what would you expect her
financials to show, as compared to a HNW non-business owner?
A) About the same income, with more assets and higher net worth
B) About the same income with more assets, yet lower net worth
C) Higher income, with fewer assets and lower net worth
D) Lower income, with fewer assets and lower net worth - (answer)A) Income is similar between
all HNW professions; however, assets and net worth include business assets, so more assets and
higher net worth are common for HNW business owners. Many business owners are exposed to a
large amount of unsystematic risk because a significant amount of their capital is often tied up in
their business. Mod 1
When considering the social impact goals of a high net worth client, wealth planners should
expect those clients to
A)not want their planner to be involved in the charitable concern.
B)want their children to also develop charitable tendencies.
COMPLETE QUESTIONS AND ANSWERS | 100% RATED CORRECT |
100% VERFIED | ALREADY GRADED A+
Which one of the following characteristics is more correct concerning younger wealthy
individuals (millennials and GenXers)?
A) Younger wealthy individuals are seeking more technological options in financial planning.
B) Younger wealthy individuals have not experienced significant bear markets.
C) Younger wealthy individuals have directly opposite financial needs as compared to baby
boomers.
D) Younger wealthy individuals likely want to be advised by one of their own generation. -
(answer)A) Younger wealthy investors (millennials and GenXers) are seeking fresh approaches
to financial planning, including more technological options. In addition, young clients also have
been through fewer years of investing but have experienced several significant bear markets.
Mod 1
One of the most important life goals of wealthy individuals is
A) protecting wealth.
B) assuring their retirement lifestyle.
,C) minimizing taxes.
D) travelling the world. - (answer)D) The most frequently stated life goals for wealthy
individuals are having good health, travelling the world, and achieving financial success. To
achieve financial success, the most common financial goals are protecting wealth, assuring
retirement lifestyle, minimizing taxes, and leaving an estate to their heirs. Mod 1
One of the most important financial goals of wealthy individuals is
A)leaving an estate to their heirs.
B)having good health.
C)none of these.
D)travelling the world. - (answer)A) To achieve financial success, the most common financial
goals are protecting wealth, assuring retirement lifestyle, minimizing taxes, and leaving an estate
to their heirs. The most frequently stated life goals for wealthy individuals are having good
health, travelling the world, and achieving financial success. Mod 1
Which one of the following statements is true regarding sustainable and responsible investments
(SRIs)?
A) Shareholder activism is a part of SRIs.
,B) Baby boomers are the most likely demographic to invest in SRIs.
C) SRIs provide lower returns, but are a "feel-good" option for investors.
D) SRIs provide only a negative filter of staying away from certain assets. - (answer)A)
Shareholder activism also plays a part in getting companies to listen by passing shareholder
resolutions. Sustainable and responsible investing has been found to be of importance to Gen
Xers and millennials. Several studies have now shown taking into account ESG factors actually
increases long-term returns. For SRI investments, the adviser needs to set up a series of filters to
determine a client's specific wants for a sustainable fund. For instance, tobacco may be a main
prohibition for one client, while religious aspects may be a positive filter for that same or another
client. Mod 1
Concerning control of assets in a private foundation versus a donor-advised fund, which one of
the following aspects is true for a donor-advised fund?
A)Remains with founder's values
B) Needs lengthy IRS approval
C) Easier and less expensive to launch
D) Must pay out a certain percentage each year - (answer)C) Donor-advised funds (DAFs) are
growing in popularity and have the advantage of being easier and cheaper to launch and not
requiring the lengthy IRS approval that private foundations need. Values may change with a
, DAF, as major contributors have input into this type of charitable fund. In addition, only private
foundations must make payouts each year; DAFs have flexibility with this. Mod 1
If a high net worth (HNW) business owner came to your office, what would you expect her
financials to show, as compared to a HNW non-business owner?
A) About the same income, with more assets and higher net worth
B) About the same income with more assets, yet lower net worth
C) Higher income, with fewer assets and lower net worth
D) Lower income, with fewer assets and lower net worth - (answer)A) Income is similar between
all HNW professions; however, assets and net worth include business assets, so more assets and
higher net worth are common for HNW business owners. Many business owners are exposed to a
large amount of unsystematic risk because a significant amount of their capital is often tied up in
their business. Mod 1
When considering the social impact goals of a high net worth client, wealth planners should
expect those clients to
A)not want their planner to be involved in the charitable concern.
B)want their children to also develop charitable tendencies.
