11/8/24, 3:16 PM
AAMS Practice ExamWITH COMPLETE SOLUTIONS
GRADED A+.
1/10
, 11/8/24, 3:16 PM
All of the following should be agreed upon between the client and the investment professional when
4
making recommendations based on an investment policy statement EXCEPT
Don't know?
Terms in this set (80)
An employer plans to use corporate- Variable life insurance
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?
The latest economic reports have been contrarian
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
As of December 31, 20X1, Bob Larkin has $364,000
the following financial data:
Assets = $17,000 + $400,000 + $95,000 +$45,000 + $8,000 + $15,000 + $125,000 =
Bond fund $17,000 $705,000. Liabilities = $16,000 + $285,000 + $40,000 = $341,000, so net worth is
Residence$400,000 $364,000. Notice that auto notes of $16,000 are included in this calculation, but auto
Vested 401(k) plan$95,000 payments of $7,000 is a cash flow item and therefore not included.
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
What is Bob's net worth?
2/10
AAMS Practice ExamWITH COMPLETE SOLUTIONS
GRADED A+.
1/10
, 11/8/24, 3:16 PM
All of the following should be agreed upon between the client and the investment professional when
4
making recommendations based on an investment policy statement EXCEPT
Don't know?
Terms in this set (80)
An employer plans to use corporate- Variable life insurance
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?
The latest economic reports have been contrarian
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
As of December 31, 20X1, Bob Larkin has $364,000
the following financial data:
Assets = $17,000 + $400,000 + $95,000 +$45,000 + $8,000 + $15,000 + $125,000 =
Bond fund $17,000 $705,000. Liabilities = $16,000 + $285,000 + $40,000 = $341,000, so net worth is
Residence$400,000 $364,000. Notice that auto notes of $16,000 are included in this calculation, but auto
Vested 401(k) plan$95,000 payments of $7,000 is a cash flow item and therefore not included.
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
What is Bob's net worth?
2/10
