1|Page
AAMS Exam || Most Recent Exam Actual Complete
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Which one of the following is most accurate with respect to
the life insurance needs of the typical family?
A) The need for insurance to cover both final expenses
and lost income decreases at age 70.
B) Life insurance generally allows families to reduce their
income taxation exposures.
C) The need for life insurance remains steady until age 65.
D) Total life insurance requirements may decrease as an
individual approaches retirement. - Answer-d
Upon retirement, the bulk of a client's assets generally
should be invested in
A) derivatives and other alternative investment for above-
average short-term gains.
B) fixed-income investments for current income and safety
of principal.
,2|Page
C) money market funds for maximum safety of principal.
D) growth investments to preserve purchasing power. -
Answer-d
One of the primary purposes of an investment policy
statement is to
A) provide a basis for portfolio review.
B) project market returns for the portfolio.
C) separate the role of the client and the investment
professional.
D) identify the securities to be included in the portfolio. -
Answer-a
An investment policy statement should be
A) developed to provide considerable investment flexibility.
B) written to reflect current market trends.
C) constructed to reflect realistic return expectations.
D) consistent with SEC investment policy guidelines. -
Answer-c
,3|Page
In an investment policy statement, which of these
attributes is necessary to benefit from the positive bias of
most investment vehicles?
A) Clearly written goals
B) Long-term perspective
C) Moderate risk tolerance
D) Realistic expectations - Answer-b
In developing an investment policy, the investment
professional is responsible for
A) assisting the client in creating the policy.
B) formulating the general policy.
C) setting the step-by-step actions to be taken.
D) implementing the investment selections. - Answer-a
Which of the following is a false statement regarding a
good business plan? The plan
A) is in writing.
, 4|Page
B) includes actionable steps.
C) should only contain business goals.
D) is shared with a mentor. - Answer-c
Jim Hanson's financial situation is as follows:
Savings account$5,000
Life insurance cash value$20,000
Short-term debts$3,000
Mortgage loan$100,000
Auto loan$10,000
Tuition payments$17,000
Auto loan payments$3,000
Mortgage loan payments$9,600
Invested assets$40,000
Use assets$220,000
A) $127,000
B) $132,000
C) $172,000
AAMS Exam || Most Recent Exam Actual Complete
Real Verified Exam Questions And Correct Answers
||Verified Exam!!||(Verified Answers) Already Graded
A+ | Guaranteed Success!! | Newest Exam!!!
Which one of the following is most accurate with respect to
the life insurance needs of the typical family?
A) The need for insurance to cover both final expenses
and lost income decreases at age 70.
B) Life insurance generally allows families to reduce their
income taxation exposures.
C) The need for life insurance remains steady until age 65.
D) Total life insurance requirements may decrease as an
individual approaches retirement. - Answer-d
Upon retirement, the bulk of a client's assets generally
should be invested in
A) derivatives and other alternative investment for above-
average short-term gains.
B) fixed-income investments for current income and safety
of principal.
,2|Page
C) money market funds for maximum safety of principal.
D) growth investments to preserve purchasing power. -
Answer-d
One of the primary purposes of an investment policy
statement is to
A) provide a basis for portfolio review.
B) project market returns for the portfolio.
C) separate the role of the client and the investment
professional.
D) identify the securities to be included in the portfolio. -
Answer-a
An investment policy statement should be
A) developed to provide considerable investment flexibility.
B) written to reflect current market trends.
C) constructed to reflect realistic return expectations.
D) consistent with SEC investment policy guidelines. -
Answer-c
,3|Page
In an investment policy statement, which of these
attributes is necessary to benefit from the positive bias of
most investment vehicles?
A) Clearly written goals
B) Long-term perspective
C) Moderate risk tolerance
D) Realistic expectations - Answer-b
In developing an investment policy, the investment
professional is responsible for
A) assisting the client in creating the policy.
B) formulating the general policy.
C) setting the step-by-step actions to be taken.
D) implementing the investment selections. - Answer-a
Which of the following is a false statement regarding a
good business plan? The plan
A) is in writing.
, 4|Page
B) includes actionable steps.
C) should only contain business goals.
D) is shared with a mentor. - Answer-c
Jim Hanson's financial situation is as follows:
Savings account$5,000
Life insurance cash value$20,000
Short-term debts$3,000
Mortgage loan$100,000
Auto loan$10,000
Tuition payments$17,000
Auto loan payments$3,000
Mortgage loan payments$9,600
Invested assets$40,000
Use assets$220,000
A) $127,000
B) $132,000
C) $172,000
