From “ When Does The IRS Start Viewing A ‘ Hobby ’ As A Business ?,” page 12 1 . What law crimped miscellaneous itemized deductions ? A . The Tax Cuts and Jobs Act of 2017 C . The SECURE Act B . The Inflation Reduction Act of 2022 D . The SECURE Act 2.0

2 . The IRS audit technique guide says examiners should look at what details when deciding if a hobby is actually a business ? A . Are the losses offsetting gains from other businesses ? B . Does the business have recreation elements ? C . Are there years it records no income ? D . All of the above

From “ Faking Growth ,” page 27

3 . What does author Steve Gresham say clients want from advisors , otherwise they will leave ? A . More focus on estate planning B . More focus on planning and relationships C . More investment choices D . More income choices

4 . What does Steve Gresham mean by “ 150 clients on average ”? A . Advisors should prospect 150 new clients per year . B . That number is the optimal client number for an advisory practice . C . That number is too many clients for an advisor to deliver “ retirement planning .” D . The number is misleading . It should be fewer because most clients aren ’ t engaged .

From “ Being Prepared For The Worst ,” page 38

5 . Which of the following statements is true ? A . All financial institutions are basically alike . B . All banks are subject to the same privacy and security standards . C . Credit unions guarantee accounts up to $ 250,000 . D . Credit unions do not guarantee accounts .

6 . Important documents should be kept how ? A . Online or in the cloud C . At your lawyer ’ s office B . At a neighbor ’ s house or office D . In a home safe or safe deposit box

From “ ESG Funds Meet The Skeptics ,” page 49

7 . Total ESG investments in the U . S . grew by how much in 2021 , as measured by Morningstar ? A . 26 % B . 55 % C . 76 % D . 89 %

8 . What political event concerned ESG in March 2023 ? A . Congress reinstated restrictions on using ESG in some retirement and pension plans . President Biden vetoed that . B . The House of Representatives voted to restrict ESG in certain retirement and pension plans , but the Democrat-controlled Senate did not . C . President Biden signed an executive order forcing ESG considerations in retirement and pension plans . D . Former President Trump made a speech against “ woke capitalism .”

From “ Growth And Income In A Tiny Package ,” page 52

9 . Why did the Capital Income Builder Fund like the company AbbVie ? A . Its patent for Humira was expiring . B . Its market cap is now bigger than that of Abbott , the company it had spun off from . C . AbbVie scores well on metrics for companies that can pay dividends . D . None of the above

10 . The Capital Income Builder Fund ’ s recent 30-day SEC yield was ____ as of early April while the S & P 500 ’ s dividend yield was ____. A . 2.65 %, 1.65 % B . 1.65 %, 2.65 % C . 3.5 %, 4.6 % D . 4.6 %, 2.65 %

From “ When Does The IRS Start Viewing A ‘ Hobby ’ As A Business ?,” page 12 1 . ____ allows taxpayers to deduct some of the expenses from an activity even without establishing a profit intent . A . Section 183 of the Internal Revenue Code B . Section 174 of the Internal Revenue Code C . The SECURE 2.0 Act D . The Tax Cuts and Jobs Act of 2017

2 . To be considered a for-profit business , an activity must show a net profit ____ out of its first ___ years of operation , the IRS says . A . Two , five

C . Four , five

B . Three , five D . Five , five

From “ Faking Growth ,” page 27 3 . What is author Steve Gresham ’ s definition of “ growth ”?

A . Net new assets C . New revenues

B . Net assets

D . New product sales

4 . Which of these is not one of the author ’ s reasons that wealth management growth is under stress ? A . The products are free . B . Most of the clients are unengaged . C . Clients don ’ t want to pay for advice . D . There are too many young clients .

From “ Being Prepared For The Worst ,” page 38

5 . Advisors say to keep at least six months of living expenses in a liquid account for emergencies . In times accounts are frozen , you should consider all but which one of these ? A . Keep some cash on hand B . Keep accounts at separate banks C . Keep a fireproof and flood-proof safe D . Keep traveler ’ s checks

From “ ESG Funds Meet The Skeptics ,” page 49

7 . A Harvard study found which two things about ESG funds ? A . They perform well while doing good . B . They matter to 89 % of investors and are growing in popularity . C . The majority of their holdings are the same as those of non-ESG funds , yet ESG funds charge more . D . The majority of their holdings are the same as those of non-ESG funds , yet ESG funds charge less .

8 . According to Morningstar , the top ESG fund manager in the U . S . by new dollar inflows is ___. A . Fidelity

C . BlackRock

B . Vanguard

D . Charles Schwab

From “ Growth And Income In A Tiny Package ,” page 52

9 . The investment mix of the American Funds Capital Income Builder Fund averages roughly __% stocks and __% fixed income . A . 50 , 50 C . 70 , 30 B . 60 , 40 D . 100 , 0

10 . The portfolio managers at the Capital Income Builder Fund aim to ____. A . Generate income that exceeds the yield on U . S . stocks B . Grow its dividend yield C . Seek growth of capital D . All of the above

56 | FINANCIAL ADVISOR MAGAZINE | MAY 2023 WWW . FA-MAG . COM