CFP Exam Q-Bank #1 with all Correct & 100% Verified
Answers |Actual Complete Exam |Already Graded A+
(Just Released)
Which regulation established the Securities Investor Protection Corporation (SIPC)?
A)
Securities Exchange Act of 1934
B)
Investment Company Act of 1940
C)
Securities Investor Protection Act of 1970
D)
Securities Act of 1933 ✔Correct Answer-Securities Investor Protection Act of 1970
Select the subsections included in Standard A. 1, Fiduciary Duty
I. Duty of Care
II. Duty of Confidentiality
III. Duty to Keep Current
IV. Duty of Loyalty ✔Correct Answer-I and IV
Todd grew up in the period following the Depression and is very conservative with his finances.
He has individual accounts at three separate federally chartered banks with balances of
$265,000, $300,000, and $200,000. What is the total amount insured by the FDIC? ✔Correct
Answer-$700,000
Tawni, a CFP® professional, has had Carl and Jill as clients for many years. Carl and Jill are
married and have become good friends of Tawni. One day when Carl stops by to pick up some
information on a potential investment, he secretly tells Tawni that he is planning to divorce Jill
and asks Tawni out on a date. What should Tawni do as a CFP® professional?
A)
Tawni should tell Jill to call a divorce attorney for a consultation.
B)
Tawni should tell Jill that Carl is planning to divorce her.
C)
Tawni should withdraw from the engagement.
D)
Tawni should go out on a date with Carl. ✔Correct Answer-Tawni should withdraw from the
engagement.
All of the following are violations of the CFP Board's Standards of Conduct EXCEPT?
A)
, Trey, a CFP® certificant, helps his clients prepare basic tax returns even though he is not an
accountant.
B)
Zachary, a CFP® professional, only recommends insurance products from his in-laws insurance
brokerage firm to his clients.
C)
Sarah, a CFP® professional, recommends a high commission mutual fund which does not meet
the suitability requirements of her client.
D)
Michael, a CFP® certificant, has a joint checking account with his brother, who is also a client of
the firm. ✔Correct Answer-Michael, a CFP® certificant, has a joint checking account with his
brother, who is also a client of the firm.
Which of the following claims will NOT be discharged in bankruptcy?
A)
A claim that arises from alimony or maintenance other than a lump-sum property settlement
B)
A claim brought by a judgment creditor whose judgment resulted from the debtor's negligent
operation of a motor vehicle
C)
All of these claims will be discharged
D)
A claim brought by a secured creditor that remains unsatisfied after the sale of the collateral
✔Correct Answer-A claim that arises from alimony or maintenance other than a lump-sum
property settlement
Which of the following statements relating to Standard A.3, Competence, in CFP Board's
Standards of Conduct is CORRECT?
A CFP® certificant may not assist clients with areas in which he is not professionally competent;
he should refer clients to competent parties.
A CFP® certificant must have relevant knowledge and skill to apply that knowledge. ✔Correct
Answer-Both I and II
Justin has the following accounts on deposit in the same bank.
Account Ownership Balance
Savings account Justin $300,000
Checking account Justin $25,000
Savings account Justin with spouse $400,000 Savings account Justin with son $100,000
How much Federal Deposit Insurance Corporation (FDIC) insurance coverage does Justin
currently have for his accounts? ✔Correct Answer-$500,000
Answers |Actual Complete Exam |Already Graded A+
(Just Released)
Which regulation established the Securities Investor Protection Corporation (SIPC)?
A)
Securities Exchange Act of 1934
B)
Investment Company Act of 1940
C)
Securities Investor Protection Act of 1970
D)
Securities Act of 1933 ✔Correct Answer-Securities Investor Protection Act of 1970
Select the subsections included in Standard A. 1, Fiduciary Duty
I. Duty of Care
II. Duty of Confidentiality
III. Duty to Keep Current
IV. Duty of Loyalty ✔Correct Answer-I and IV
Todd grew up in the period following the Depression and is very conservative with his finances.
He has individual accounts at three separate federally chartered banks with balances of
$265,000, $300,000, and $200,000. What is the total amount insured by the FDIC? ✔Correct
Answer-$700,000
Tawni, a CFP® professional, has had Carl and Jill as clients for many years. Carl and Jill are
married and have become good friends of Tawni. One day when Carl stops by to pick up some
information on a potential investment, he secretly tells Tawni that he is planning to divorce Jill
and asks Tawni out on a date. What should Tawni do as a CFP® professional?
A)
Tawni should tell Jill to call a divorce attorney for a consultation.
B)
Tawni should tell Jill that Carl is planning to divorce her.
C)
Tawni should withdraw from the engagement.
D)
Tawni should go out on a date with Carl. ✔Correct Answer-Tawni should withdraw from the
engagement.
All of the following are violations of the CFP Board's Standards of Conduct EXCEPT?
A)
, Trey, a CFP® certificant, helps his clients prepare basic tax returns even though he is not an
accountant.
B)
Zachary, a CFP® professional, only recommends insurance products from his in-laws insurance
brokerage firm to his clients.
C)
Sarah, a CFP® professional, recommends a high commission mutual fund which does not meet
the suitability requirements of her client.
D)
Michael, a CFP® certificant, has a joint checking account with his brother, who is also a client of
the firm. ✔Correct Answer-Michael, a CFP® certificant, has a joint checking account with his
brother, who is also a client of the firm.
Which of the following claims will NOT be discharged in bankruptcy?
A)
A claim that arises from alimony or maintenance other than a lump-sum property settlement
B)
A claim brought by a judgment creditor whose judgment resulted from the debtor's negligent
operation of a motor vehicle
C)
All of these claims will be discharged
D)
A claim brought by a secured creditor that remains unsatisfied after the sale of the collateral
✔Correct Answer-A claim that arises from alimony or maintenance other than a lump-sum
property settlement
Which of the following statements relating to Standard A.3, Competence, in CFP Board's
Standards of Conduct is CORRECT?
A CFP® certificant may not assist clients with areas in which he is not professionally competent;
he should refer clients to competent parties.
A CFP® certificant must have relevant knowledge and skill to apply that knowledge. ✔Correct
Answer-Both I and II
Justin has the following accounts on deposit in the same bank.
Account Ownership Balance
Savings account Justin $300,000
Checking account Justin $25,000
Savings account Justin with spouse $400,000 Savings account Justin with son $100,000
How much Federal Deposit Insurance Corporation (FDIC) insurance coverage does Justin
currently have for his accounts? ✔Correct Answer-$500,000
