AWMA Exam 1 comprehensive questions and
verified answers ACTUAL EXAM 2026 TEST!!
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Terms in this set (80)
Which one of the following A) Younger wealthy investors (millennials and
characteristics is more correct GenXers) are seeking fresh approaches to
concerning younger wealthy financial planning, including more technological
individuals (millennials and options. In addition, young clients also have been
GenXers)? through fewer years of investing but have
experienced several significant bear markets.
A) Younger wealthy individuals are Mod 1
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.
,One of the most important life D) The most frequently stated life goals for
goals of wealthy individuals is wealthy individuals are having good health,
travelling the world, and achieving financial
A) protecting wealth. success. To achieve financial success, the most
B) assuring their retirement lifestyle. common financial goals are protecting wealth,
C) minimizing taxes. assuring retirement lifestyle, minimizing taxes,
D) travelling the world. and leaving an estate to their heirs. Mod 1
One of the most important financial A) To achieve financial success, the most
goals of wealthy individuals is common financial goals are protecting wealth,
assuring retirement lifestyle, minimizing taxes,
A)leaving an estate to their heirs. and leaving an estate to their heirs. The most
B)having good health. frequently stated life goals for wealthy
C)none of these. individuals are having good health, travelling the
D)travelling the world. world, and achieving financial success. Mod 1
Which one of the following A) Shareholder activism also plays a part in
statements is true regarding getting companies to listen by passing
sustainable and responsible shareholder resolutions. Sustainable and
investments (SRIs)? responsible investing has been found to be of
importance to Gen Xers and millennials. Several
A) Shareholder activism is a part of studies have now shown taking into account ESG
SRIs. factors actually increases long-term returns. For
B) Baby boomers are the most likely SRI investments, the adviser needs to set up a
demographic to invest in SRIs. series of filters to determine a client's specific
C) SRIs provide lower returns, but wants for a sustainable fund. For instance,
are a "feel-good" option for tobacco may be a main prohibition for one client,
investors. while religious aspects may be a positive filter for
D) SRIs provide only a negative that same or another client. Mod 1
filter of staying away from certain
assets.
,Concerning control of assets in a C) Donor-advised funds (DAFs) are growing in
private foundation versus a donor- popularity and have the advantage of being
advised fund, which one of the easier and cheaper to launch and not requiring
following aspects is true for a the lengthy IRS approval that private foundations
donor-advised fund? need. Values may change with a DAF, as major
contributors have input into this type of
A)Remains with founder's values charitable fund. In addition, only private
B) Needs lengthy IRS approval foundations must make payouts each year; DAFs
C) Easier and less expensive to have flexibility with this. Mod 1
launch
D) Must pay out a certain
percentage each year
If a high net worth (HNW) business A) Income is similar between all HNW
owner came to your office, what professions; however, assets and net worth
would you expect her financials to include business assets, so more assets and
show, as compared to a HNW non- higher net worth are common for HNW business
business owner? owners. Many business owners are exposed to a
large amount of unsystematic risk because a
A) About the same income, with significant amount of their capital is often tied up
more assets and higher net worth in their business. Mod 1
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
, When considering the social impact B) The reasons high net worth individuals make
goals of a high net worth client, charitable donations are largely humanitarian in
wealth planners should expect nature—only half of these individuals donate to
those clients to reduce tax exposure as a secondary concern. It is
important for advisers to be aware of and
A)not want their planner to be research any social impact their clients find
involved in the charitable concern. important. In addition, the preferred methods of
B)want their children to also accomplishing social impact in the U.S., as
develop charitable tendencies. compared to worldwide, are more religious and
C) only want the charitable concern also include more aspects that are nonfinancial,
in order to reduce tax exposure. such as volunteerism. Mod 1
D) overwhelmingly donate assets
and not volunteer their time.
As compared to younger high net A) Older clients describe their needs as
worth individuals, older wealthy straightforward: managing cash and credit, and
individuals describe their financial growing investments. Younger clients indicate
needs as more geared toward more complex needs, such as a reluctance to
invest in equities, interest in digital meetings, and
A)managing cash and credit. a propensity toward using credit. Mod 1
B) digital meetings.
C)investing outside of equities.
D) obtaining and using credit.
verified answers ACTUAL EXAM 2026 TEST!!
Graded A+
Save
Terms in this set (80)
Which one of the following A) Younger wealthy investors (millennials and
characteristics is more correct GenXers) are seeking fresh approaches to
concerning younger wealthy financial planning, including more technological
individuals (millennials and options. In addition, young clients also have been
GenXers)? through fewer years of investing but have
experienced several significant bear markets.
A) Younger wealthy individuals are Mod 1
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.
,One of the most important life D) The most frequently stated life goals for
goals of wealthy individuals is wealthy individuals are having good health,
travelling the world, and achieving financial
A) protecting wealth. success. To achieve financial success, the most
B) assuring their retirement lifestyle. common financial goals are protecting wealth,
C) minimizing taxes. assuring retirement lifestyle, minimizing taxes,
D) travelling the world. and leaving an estate to their heirs. Mod 1
One of the most important financial A) To achieve financial success, the most
goals of wealthy individuals is common financial goals are protecting wealth,
assuring retirement lifestyle, minimizing taxes,
A)leaving an estate to their heirs. and leaving an estate to their heirs. The most
B)having good health. frequently stated life goals for wealthy
C)none of these. individuals are having good health, travelling the
D)travelling the world. world, and achieving financial success. Mod 1
Which one of the following A) Shareholder activism also plays a part in
statements is true regarding getting companies to listen by passing
sustainable and responsible shareholder resolutions. Sustainable and
investments (SRIs)? responsible investing has been found to be of
importance to Gen Xers and millennials. Several
A) Shareholder activism is a part of studies have now shown taking into account ESG
SRIs. factors actually increases long-term returns. For
B) Baby boomers are the most likely SRI investments, the adviser needs to set up a
demographic to invest in SRIs. series of filters to determine a client's specific
C) SRIs provide lower returns, but wants for a sustainable fund. For instance,
are a "feel-good" option for tobacco may be a main prohibition for one client,
investors. while religious aspects may be a positive filter for
D) SRIs provide only a negative that same or another client. Mod 1
filter of staying away from certain
assets.
,Concerning control of assets in a C) Donor-advised funds (DAFs) are growing in
private foundation versus a donor- popularity and have the advantage of being
advised fund, which one of the easier and cheaper to launch and not requiring
following aspects is true for a the lengthy IRS approval that private foundations
donor-advised fund? need. Values may change with a DAF, as major
contributors have input into this type of
A)Remains with founder's values charitable fund. In addition, only private
B) Needs lengthy IRS approval foundations must make payouts each year; DAFs
C) Easier and less expensive to have flexibility with this. Mod 1
launch
D) Must pay out a certain
percentage each year
If a high net worth (HNW) business A) Income is similar between all HNW
owner came to your office, what professions; however, assets and net worth
would you expect her financials to include business assets, so more assets and
show, as compared to a HNW non- higher net worth are common for HNW business
business owner? owners. Many business owners are exposed to a
large amount of unsystematic risk because a
A) About the same income, with significant amount of their capital is often tied up
more assets and higher net worth in their business. Mod 1
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
, When considering the social impact B) The reasons high net worth individuals make
goals of a high net worth client, charitable donations are largely humanitarian in
wealth planners should expect nature—only half of these individuals donate to
those clients to reduce tax exposure as a secondary concern. It is
important for advisers to be aware of and
A)not want their planner to be research any social impact their clients find
involved in the charitable concern. important. In addition, the preferred methods of
B)want their children to also accomplishing social impact in the U.S., as
develop charitable tendencies. compared to worldwide, are more religious and
C) only want the charitable concern also include more aspects that are nonfinancial,
in order to reduce tax exposure. such as volunteerism. Mod 1
D) overwhelmingly donate assets
and not volunteer their time.
As compared to younger high net A) Older clients describe their needs as
worth individuals, older wealthy straightforward: managing cash and credit, and
individuals describe their financial growing investments. Younger clients indicate
needs as more geared toward more complex needs, such as a reluctance to
invest in equities, interest in digital meetings, and
A)managing cash and credit. a propensity toward using credit. Mod 1
B) digital meetings.
C)investing outside of equities.
D) obtaining and using credit.
