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GLO_CWM_LVL_1 Exam Dumps - AAFM Chartered Wealth Manager Questions and Answers

Question # 139

Which of the following is not true about traditional defined benefit plans?

Options:

A.

A defined benefit plan provides a specified retirement benefit, and is funded based on actuarial assumptions

B.

A defined benefit plan provides higher proportionate benefits for key employees when key employees as a group are older than rank and file employees

C.

A defined benefit plan provides an individual account for each employee who participates

D.

A defined benefit plan can provide benefits for service prior to establishment of the plan

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Question # 140

The effect of money laundering on the financial system is to:

Options:

A.

create an opportunity for banks to increase profits

B.

undermine credibility and expand control by criminals

C.

improve and enhance money flows by bringing cash into the system

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Question # 141

Risk that can be eliminated through diversification is called ______ risk.

Options:

A.

Unique

B.

Firm-specific

C.

Diversifiable

D.

All of the above

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Question # 142

The liability of members if company is limited by guarantee.

Options:

A.

Unpaid value of shares

B.

Guarantee amount

C.

Unlimited liability

D.

None of the above

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Question # 143

What is the prudent practice for parking emergency fund for a working young couple?

Options:

A.

12 month’s family income

B.

1 month’s family income

C.

2-3 months family income

D.

None of the above

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Question # 144

Partition can be effected orally & there is no requirement in law that the partition must the evident try a written agreement

Options:

A.

TRUE

B.

FALSE

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Question # 145

Vehicle finance is made cheaper through _________.

Options:

A.

Better insurance cover

B.

Special arrangement with manufacturer

C.

Navigation system in the car

D.

Higher engine capacity

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Question # 146

Retiring early will need

Options:

A.

Normal saving as planned earlier

B.

Accelerated savings to get the goal

C.

Delayed savings

D.

All of the above

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Question # 147

Cash credit is treated as out of order if

Options:

A.

No credits continuously for 90 days

B.

Credits not adequate to cover interest for 90 days

C.

Either of the above

D.

Both of them

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Question # 148

If the deceased has two widows, four sons and two daughters then what is the share of each widow

Options:

A.

One seventh of estate

B.

One half of estate

C.

One eighth portion

D.

One fourteenth portion

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Question # 149

The trust is empty at creation during life and will transfer the property into the trust at death

Options:

A.

Special trust

B.

Will trust

C.

Secret trust

D.

Pourover trust

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Question # 150

BIS handles each of the following, except ________.

Options:

A.

Forum to promote discussion and policy analysis

B.

Centre for economic and monetary research

C.

Credit rating of global banks

D.

Prime counter-party for central banks

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Question # 151

Aakash a trustee for Mahesh allows the trust to be executed solely by his co-trustee, Suresh. Suresh misapplies the trust property. Is Aakash personally answerable to the loss?

Options:

A.

Yes

B.

No

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Question # 152

Bond price is inversely related to yields

Options:

A.

TRUE

B.

FALSE

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Question # 153

The presence of _____ in financial markets leads to adverse selection and moral hazard problems that interfere with the efficient functioning of financial markets.

Options:

A.

non-collateralized risk

B.

free-riding

C.

asymmetric information

D.

costly state verification

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Exam Code: GLO_CWM_LVL_1
Exam Name: Chartered Wealth Manager (CWM) Global Examination
Last Update: Jan 31, 2025
Questions: 1057
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