FPQP Exam (Paraplanning) Questions
with Solved Solutions 2026-2027 Set.
Which of the following is a characteristic of properly stated financial goals? - Answer Definite
The current yield from already invested assets is first identified in which step in the financial
planning process? - Answer Gathering client data, including goals
What is correct about financial planners? - Answer It is up to clients to determine whether
someone using the title of "financial planner" is really a financial planner or not.
What is a requirement of being an FPQP? - Answer Must abide by a code of ethics
The primary reason a financial goal needs to be measurable is so that it can be - Answer
Monitored
Is health status qualitative data or quantitative data? - Answer Qualitative
What is an example of an invested asset? - Answer Vested pension benefits
The financial statement that summarizes actual cash receipts and cash disbursements for a
specified period of time is the - Answer Cash flow statement
What is generally considered a healthy savings ratio? - Answer 10% or higher
A mortgage that starts with smaller initial payments and then increases to larger than normal
payments later in the life of the loan is - Answer a graduated-payment mortgage
The nonmortgage debt-to-income ratio is considered healthy when that ratio is - Answer 20%
or lower
The Fair Credit Billing Act - Answer requires creditors to send a statement to the consumer
that describes procedures to follow when billing errors occur
Full bankruptcy (Chapter 7) calls for the immediate liquidation of available assets to pay down
any outstanding debt as much as possible, and then cancels the remaining debt outstanding,
but it does not cancel which one of the following? - Answer government guaranteed student
loans
, What general percentage of income allocated to rent do landlords consider preferable for a
potential renter? - Answer 20%-40%
Which one of the following is a correct listing of the major components of net worth? - Answer
home equity, personal property, and retirement benefits
One factor lenders use in evaluating a borrower is capital. Capital is the - Answer net worth of
the borrower
Which of the following statements about an education grant is true? - Answer An education
grant is money given outright to a student, with no expectation of repayment
Which one of the following statements is correct about annuities? - Answer The future value
of an annuity due will be greater than the future value of an ordinary annuity.
Jack Taylor invested $100,000, and after one year, the account was worth $107,000. Assuming
monthly compounding, approximately what rate of return did he earn? - Answer 6.78%
(12 P/YR, end mode, C ALL. 100000 +/- PV, 107000 FV, 1, downshift, N, (12 compounding
periods), solve for I/YR = 6.78%)
How does an assumption on the future rate of inflation impact the achievement of a specific
goal? - Answer A rate of inflation assumption that is too low may mean that more years will be
needed to achieve the goal.
Fritz has had a $175,000, 30-year mortgage with a 5% interest rate for two years. He has asked
you to determine how much he has paid in interest so far. You would advise him that the
interest he has paid on the first 24 payments is - Answer $17,251
(12 P/YR, end mode, 175000 PV, 5 I/YR, 30, downshift, N (360 compounding periods), solve for
PMT = $939.44. Then 1, INPUT, 24, downshift, AMORT, = (5,295.93 principal paid), = (17,250.63
interest paid—this is the answer), = (169,704.07 principal remaining).)
Which of the following statements is correct about annuities? - Answer All else being equal,
contributing to an IRA as an annuity due rather than an ordinary annuity will result in a higher
account balance in the future.
James has just won the lottery, and has the choice of either taking a lump sum of $500,000 or
receiving a payment of $62,000 at the beginning of each year for the next 10 years. If James
with Solved Solutions 2026-2027 Set.
Which of the following is a characteristic of properly stated financial goals? - Answer Definite
The current yield from already invested assets is first identified in which step in the financial
planning process? - Answer Gathering client data, including goals
What is correct about financial planners? - Answer It is up to clients to determine whether
someone using the title of "financial planner" is really a financial planner or not.
What is a requirement of being an FPQP? - Answer Must abide by a code of ethics
The primary reason a financial goal needs to be measurable is so that it can be - Answer
Monitored
Is health status qualitative data or quantitative data? - Answer Qualitative
What is an example of an invested asset? - Answer Vested pension benefits
The financial statement that summarizes actual cash receipts and cash disbursements for a
specified period of time is the - Answer Cash flow statement
What is generally considered a healthy savings ratio? - Answer 10% or higher
A mortgage that starts with smaller initial payments and then increases to larger than normal
payments later in the life of the loan is - Answer a graduated-payment mortgage
The nonmortgage debt-to-income ratio is considered healthy when that ratio is - Answer 20%
or lower
The Fair Credit Billing Act - Answer requires creditors to send a statement to the consumer
that describes procedures to follow when billing errors occur
Full bankruptcy (Chapter 7) calls for the immediate liquidation of available assets to pay down
any outstanding debt as much as possible, and then cancels the remaining debt outstanding,
but it does not cancel which one of the following? - Answer government guaranteed student
loans
, What general percentage of income allocated to rent do landlords consider preferable for a
potential renter? - Answer 20%-40%
Which one of the following is a correct listing of the major components of net worth? - Answer
home equity, personal property, and retirement benefits
One factor lenders use in evaluating a borrower is capital. Capital is the - Answer net worth of
the borrower
Which of the following statements about an education grant is true? - Answer An education
grant is money given outright to a student, with no expectation of repayment
Which one of the following statements is correct about annuities? - Answer The future value
of an annuity due will be greater than the future value of an ordinary annuity.
Jack Taylor invested $100,000, and after one year, the account was worth $107,000. Assuming
monthly compounding, approximately what rate of return did he earn? - Answer 6.78%
(12 P/YR, end mode, C ALL. 100000 +/- PV, 107000 FV, 1, downshift, N, (12 compounding
periods), solve for I/YR = 6.78%)
How does an assumption on the future rate of inflation impact the achievement of a specific
goal? - Answer A rate of inflation assumption that is too low may mean that more years will be
needed to achieve the goal.
Fritz has had a $175,000, 30-year mortgage with a 5% interest rate for two years. He has asked
you to determine how much he has paid in interest so far. You would advise him that the
interest he has paid on the first 24 payments is - Answer $17,251
(12 P/YR, end mode, 175000 PV, 5 I/YR, 30, downshift, N (360 compounding periods), solve for
PMT = $939.44. Then 1, INPUT, 24, downshift, AMORT, = (5,295.93 principal paid), = (17,250.63
interest paid—this is the answer), = (169,704.07 principal remaining).)
Which of the following statements is correct about annuities? - Answer All else being equal,
contributing to an IRA as an annuity due rather than an ordinary annuity will result in a higher
account balance in the future.
James has just won the lottery, and has the choice of either taking a lump sum of $500,000 or
receiving a payment of $62,000 at the beginning of each year for the next 10 years. If James
