1 for specific request mail
AAMS Module Quizzes (1-10) Questions and Correct
Answers | Latest Update
What are the major steps in the asset management process— Ans: 1.
gather data
2. establish goals
3. analyze information
4. make and implement recommendations
Assignment Expert
5. monitor
Stefan's business plan includes the following goal: "I will contact 50
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prospective clients and document this activity in the CRM for tracking
purposes." Which primary element of a good goal is missing?— Ans: This
goal is not time-framed.
2026
The acronym to remember for goal setting is SMART, which stands for
Specific, Measurable, Achievable, Relevant, and Time-Framed. The
©
primary flaw in this goal is that it is not time-framed. Because it is not
time-framed, it is difficult to tell if this is achievable, but it is certainly
measurable and very likely relevant.
Which one of the following is not an invested asset?— Ans: 180-day
certificate of deposit
A certificate of deposit is a cash equivalent and therefore should be listed
under Cash and Cash Equivalents.
Victoria Gregory's financial situation is as follows:
Cash/cash EquivalentsL $15,000
Short Term debts: $23,000
LTDs: $140,000
, 2 for specific request mail
Taxes: $8000
Invested Assets: $45,000
Use Assets: $192,000
What is her net worth?— Ans: $89,000
Assets = Cash/cash equivalents + Invested assets + Use assets ($15,000 +
$45,000 + $192,000 = $252,000). Liabilities = Short-term debts + Long-
term debts ($23,000 + $140,000 = $163,000). Assets - Liabilities = Net
Worth, so $252,000 - $163,000 = $89,000.
Assignment Expert
Which one of the following statements best describes the income
statement and its major components?— Ans: The income statement
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indicates, for a certain period of time, an individual's cash inflows and
outflows. Its components include gross income, expenses, and surplus or
deficit.
2026
The income statement describes cash flow for a period of time and
contains the components of gross income, from which expenses are
©
subtracted to determine the surplus or deficit.
All of the following provide a clearer picture of the client's needs— Ans:
1. anticipated retirement lifestyle
2. bad experiences w/ particular investments
3. succession planning in place, if any, for a client involved in ownership
of small business
Which one of the following is considered a "foundation" goal?— Ans:
emergency fund
An emergency fund is a "foundation" goal because it is an essential goal
for survival in the event of a dramatic life event.
, 3 for specific request mail
Which one of the following is the better written financial goal?— Ans: to
accumulate $15,000 for a boat purchase in two years
This goal is well written because it contains a specific dollar amount and
a specific time frame.
When analyzing information gathered from a client, which of the
following are important factors to look for?— Ans: 1. mismatches
between the current investment position or resources and stated goals.
This is an important factor in the analysis step. Any mismatches between
the client's goals and the investment vehicles used to attain those goals
Assignment Expert
should be highlighted.
2. the validity of the client's stated goals.
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This is an important factor in the analysis step. If the client's goals are
unrealistic, this problem needs to be addressed immediately.
2026
3. tax problems that might be ameliorated through investment planning.
This is an important factor in the analysis step. Potential tax problems
©
should be addressed as part of the investment strategy.
Marcia Simpson has analyzed her client's situation and has concluded
that her client will come short of attaining the amount of capital he
would like to have by the time he plans to retire. The client is a low risk
taker and will have limited funds for future periodic investments. Before
making a recommendation, Marcia should do which one of the
following?— Ans: Discuss the problem and ask the client to clarify how
he wishes to adjust his accumulation goal, risk level, or periodic
investments.
After being informed of the various constraints, implications of their
decisions, and other options they have, the client can choose to make
adjustments with which he is comfortable.
, 4 for specific request mail
Which of the following is a matter that needs to be clarified before
making investment recommendations?— Ans: 1. client's goals
2. risk parameters of the client
3. time horizons of the goals
Four main attributes of a good business plan— Ans: 1. written and
shared with someone who has an interest in your success
2. include realistic action steps and personal goals
3. professional development goals
Assignment Expert
Which of the following is the more important factor in establishing trust
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with a client?— Ans: demonstrating professionalism and honesty
Demonstrating professionalism and honesty is the most important factor
in establishing trust with a client.
2026
What are the three characteristics of a well-defined goal?— Ans: 1.
purpose
©
2. specific dollar amount
3. defined time frame
Which one of the following is a mismatch between a client's time horizon
and stated goal?— Ans: A 55-year-old client with no current retirement
savings says that saving for retirement is her top priority; she plans to
retire at age 62.
Seven years is not enough time for this client to amass the principal
needed to support a retirement period of 15 to 20 years (or longer).
Managing client expectations is best achieved through which of the
following?— Ans: educate the client
AAMS Module Quizzes (1-10) Questions and Correct
Answers | Latest Update
What are the major steps in the asset management process— Ans: 1.
gather data
2. establish goals
3. analyze information
4. make and implement recommendations
Assignment Expert
5. monitor
Stefan's business plan includes the following goal: "I will contact 50
Guru01 - Stuvia
prospective clients and document this activity in the CRM for tracking
purposes." Which primary element of a good goal is missing?— Ans: This
goal is not time-framed.
2026
The acronym to remember for goal setting is SMART, which stands for
Specific, Measurable, Achievable, Relevant, and Time-Framed. The
©
primary flaw in this goal is that it is not time-framed. Because it is not
time-framed, it is difficult to tell if this is achievable, but it is certainly
measurable and very likely relevant.
Which one of the following is not an invested asset?— Ans: 180-day
certificate of deposit
A certificate of deposit is a cash equivalent and therefore should be listed
under Cash and Cash Equivalents.
Victoria Gregory's financial situation is as follows:
Cash/cash EquivalentsL $15,000
Short Term debts: $23,000
LTDs: $140,000
, 2 for specific request mail
Taxes: $8000
Invested Assets: $45,000
Use Assets: $192,000
What is her net worth?— Ans: $89,000
Assets = Cash/cash equivalents + Invested assets + Use assets ($15,000 +
$45,000 + $192,000 = $252,000). Liabilities = Short-term debts + Long-
term debts ($23,000 + $140,000 = $163,000). Assets - Liabilities = Net
Worth, so $252,000 - $163,000 = $89,000.
Assignment Expert
Which one of the following statements best describes the income
statement and its major components?— Ans: The income statement
Guru01 - Stuvia
indicates, for a certain period of time, an individual's cash inflows and
outflows. Its components include gross income, expenses, and surplus or
deficit.
2026
The income statement describes cash flow for a period of time and
contains the components of gross income, from which expenses are
©
subtracted to determine the surplus or deficit.
All of the following provide a clearer picture of the client's needs— Ans:
1. anticipated retirement lifestyle
2. bad experiences w/ particular investments
3. succession planning in place, if any, for a client involved in ownership
of small business
Which one of the following is considered a "foundation" goal?— Ans:
emergency fund
An emergency fund is a "foundation" goal because it is an essential goal
for survival in the event of a dramatic life event.
, 3 for specific request mail
Which one of the following is the better written financial goal?— Ans: to
accumulate $15,000 for a boat purchase in two years
This goal is well written because it contains a specific dollar amount and
a specific time frame.
When analyzing information gathered from a client, which of the
following are important factors to look for?— Ans: 1. mismatches
between the current investment position or resources and stated goals.
This is an important factor in the analysis step. Any mismatches between
the client's goals and the investment vehicles used to attain those goals
Assignment Expert
should be highlighted.
2. the validity of the client's stated goals.
Guru01 - Stuvia
This is an important factor in the analysis step. If the client's goals are
unrealistic, this problem needs to be addressed immediately.
2026
3. tax problems that might be ameliorated through investment planning.
This is an important factor in the analysis step. Potential tax problems
©
should be addressed as part of the investment strategy.
Marcia Simpson has analyzed her client's situation and has concluded
that her client will come short of attaining the amount of capital he
would like to have by the time he plans to retire. The client is a low risk
taker and will have limited funds for future periodic investments. Before
making a recommendation, Marcia should do which one of the
following?— Ans: Discuss the problem and ask the client to clarify how
he wishes to adjust his accumulation goal, risk level, or periodic
investments.
After being informed of the various constraints, implications of their
decisions, and other options they have, the client can choose to make
adjustments with which he is comfortable.
, 4 for specific request mail
Which of the following is a matter that needs to be clarified before
making investment recommendations?— Ans: 1. client's goals
2. risk parameters of the client
3. time horizons of the goals
Four main attributes of a good business plan— Ans: 1. written and
shared with someone who has an interest in your success
2. include realistic action steps and personal goals
3. professional development goals
Assignment Expert
Which of the following is the more important factor in establishing trust
Guru01 - Stuvia
with a client?— Ans: demonstrating professionalism and honesty
Demonstrating professionalism and honesty is the most important factor
in establishing trust with a client.
2026
What are the three characteristics of a well-defined goal?— Ans: 1.
purpose
©
2. specific dollar amount
3. defined time frame
Which one of the following is a mismatch between a client's time horizon
and stated goal?— Ans: A 55-year-old client with no current retirement
savings says that saving for retirement is her top priority; she plans to
retire at age 62.
Seven years is not enough time for this client to amass the principal
needed to support a retirement period of 15 to 20 years (or longer).
Managing client expectations is best achieved through which of the
following?— Ans: educate the client
