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AAFM CWM_LEVEL_2 Exam - Topic 7 Question 37 Discussion

Section C (4 Mark)Read the senario and answer to the question.What is the Basic Liquidity Ratio for the couple? Is it sufficient considering Vinay's circumstances?
C) 4.25, just sufficient
A) 3.25, not sufficient
B) 1.5, not sufficient
D) 7.66, Liquidity is more then required and he is advised to shift 50% of his liquid assets to Debt/Equity Assets.

AAFM CWM_LEVEL_2 Exam - Topic 7 Question 37 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 37
Topic #: 7
[All CWM_LEVEL_2 Questions]

Section C (4 Mark)

Read the senario and answer to the question.

What is the Basic Liquidity Ratio for the couple? Is it sufficient considering Vinay's circumstances?

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Suggested Answer: C

by Jose at May 08, 2022, 09:41 AM

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Lynda
7 months ago
7.66 sounds excessive, why not invest more wisely?
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Joesph
7 months ago
Wait, how can 4.25 be just sufficient? Seems risky!
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Monroe
7 months ago
I agree, 3.25 is too low for Vinay's situation.
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Aretha
7 months ago
Basic Liquidity Ratio is 3.25, definitely not enough.
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Tamar
7 months ago
}
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Tandra
8 months ago
]
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Sharmaine
8 months ago
}
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Kerry
8 months ago
"I recall a related problem where a very high ratio led to advice to rebalance assets; not sure if that applies to this scenario."
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Detra
8 months ago
"Candidate D",
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Joanna
8 months ago
{
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Detra
8 months ago
"Candidate C",
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Barabara
9 months ago
{
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Kerry
9 months ago
"I'm not sure whether to use monthly obligations or current liabilities here—the case notes aren’t clear."
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Daniel
9 months ago
},
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Hyman
9 months ago
1.5 is alarming, they need to reassess their finances.
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Pilar
10 months ago
},
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Kerry
10 months ago
"In a similar practice Q they used liquid assets / monthly obligations; would apply if Vinay’s expenses are monthly."
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Detra
10 months ago
"Candidate B",
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Edgar
10 months ago
{
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Felton
10 months ago
},
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Kerry
10 months ago
"Basic Liquidity Ratio = liquid assets / current liabilities; that's the formula I practiced."
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Detra
11 months ago
"Candidate A",
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Marshall
11 months ago
{
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Daryl
11 months ago
[
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Lashanda
11 months ago
{
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Lynelle
11 months ago
Okay, let me see. Functional and hierarchical are definitely traditional escalation paths, so I'm pretty confident those are the two correct answers. The other two options seem less clear to me.
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Wilburn
11 months ago
Packet, definitely Packet. The IP stack adds the source and destination addresses at the network layer, so the PDU has to be called a Packet.
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Zana
11 months ago
Okay, I've got this. Revenue bonds are a liability limited to the pledged revenue, so the issuer is not obligated to repay the debt from the general fund or by levying taxes. The answer must be D, none of these.
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Vincenza
12 months ago
Hmm, I'm a little unsure about this one. I know the difference between hot, warm, and cold sites, but I'm not totally clear on the specifics of what "partially configured" and "missing the central computer" means in this context.
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