AAMS Practice Exam with Questions and Answers

AAMS Practice Exam with Questions and Answers An employer plans to use corporate-owned life insurance to informally fund a nonqualified deferred compensation agreement and wants flexibility regarding investment choices. Which one of the following types of life insurance should this employer choose? ANSWER Variable life insurance The latest economic reports have been gloomy, and the stock market is in a protracted slump. Most of your regular stock customers are selling out their positions. A new client, Mr. Jones, sees these conditions as a buying opportunity. You would define his investment personality as ANSWER contrarian As of December 31, 20X1, Bob Larkin has the following financial data: Bond fund $17,000 Residence$400,000 Vested 401(k) plan$95,000 Auto notes$16,000 Residence mortgage$285,000 Auto payments$7,000 Automobiles$45,000 Checking account$8,000 Utilities$4,000 CD$15,000 Stock$125,000 Home equity loan$40,000