Final answer:
An AME can exercise the privileges of the license only when they have met the recency requirements as per AWM 566. The other options provided relate more to pilots or are general aircraft maintenance schedules, not directly to an AME's licensing privileges.
Step-by-step explanation:
An Aircraft Maintenance Engineer (AME) can exercise the privileges of the license only when recency requirements have been met as per AWM 566. It is essential for an AME to stay current with their skills and knowledge. The Airworthiness Manual (AWM), which is a set of regulations and standards, outlines these requirements for maintaining and certifying aircraft.
Option B, which mentions updating a medical certificate annually, and option C, which mentions flight proficiency evaluations conducted quarterly, do not typically apply to AMEs. Instead, they are more relevant to pilots. Similarly, option D, regarding aircraft being inspected and certified biannually, is a reference to aircraft maintenance schedules rather than the currency of the AME's license.