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FP1 / FULL PRACTICE EXAM QUESTIONS AND ANSWERS
GRADED A+ LATEST UPDATE.
1. Which statement regarding the traits or values of financial advisors is
correct?
A. Professionalism is displayed by being competent and knowledgeable.
B. Diligence is displayed by being honest with clients.
C. Objectivity requires respecting clients' privacy.
D. Confidentiality requires the advisor to make impartial recommendations.: A.
Professionalism is displayed by being competent and knowledgeable.
Professionalism is displayed by being competent and knowledgeable by keeping up
to date regarding key aspects of the financial services industry.
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,mailto:https://www.stuvia.com/user/techgrades
2. By and large, what statement below is true in regards to the current land-
scape in Canada for financial advisors?
A. There has been a dramatic shift to fee based advice as it's perceived as
unbiased.
B. The role has shifted to a client driven model where building a strong client
relationship is key.
C. The business is now product driven where it's all about selling higher
commissioned products.
D. The industry is focusing on reducing costs and finding the most inexpen-
sive investments for clients.: B. The role has shifted to a client driven model where
building a strong client relationship is key.
The role of the Advisor in the financial services industry has changed in recent years
from one that is product driven to one that is client driven. Reference: Module 1,
Section 1
3. Which statements about the evolution of the role of financial advisors is/are
correct?
[I] The financial services industry has moved towards an integrated market
and so have advisors.
[II] Advisors have fewer products and services to offer to clients.
[III] Advisors require a greater level of knowledge to recommend sophisticated
alternatives to clients.
A. I only.
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,mailto:https://www.stuvia.com/user/techgrades
B. I and III only.
C. II and III only.
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D. I and II only.: B. I and III only.
Advisors have to work within a highly integrated financial services market and
must possess a much higher level of knowledge than before to satisfy increasingly
sophisticated clients.
4. Select the first step in the financial planning process.
A. Analyzing a client's data and information.
B. Recommending strategies to meet goals.
C. Establishing a relationship with the client.
D. Collecting a client's data and information.: C. Establishing a relationship with
the client.
The first step in the financial planning process is for an advisor to establish a
relationship with the client; everything else follows.
5. Select the item that would provide you with quantitative data about your new
client.
A. Profit sharing plan statement.
B. Risk tolerance assessment.
C. Goal setting questionnaire.
mailto:https://www.stuvia.com/en-us/user/techgrades
FP1 / FULL PRACTICE EXAM QUESTIONS AND ANSWERS
GRADED A+ LATEST UPDATE.
1. Which statement regarding the traits or values of financial advisors is
correct?
A. Professionalism is displayed by being competent and knowledgeable.
B. Diligence is displayed by being honest with clients.
C. Objectivity requires respecting clients' privacy.
D. Confidentiality requires the advisor to make impartial recommendations.: A.
Professionalism is displayed by being competent and knowledgeable.
Professionalism is displayed by being competent and knowledgeable by keeping up
to date regarding key aspects of the financial services industry.
mailto:https://www.stuvia.com/en-us/user/techgrades
,mailto:https://www.stuvia.com/user/techgrades
2. By and large, what statement below is true in regards to the current land-
scape in Canada for financial advisors?
A. There has been a dramatic shift to fee based advice as it's perceived as
unbiased.
B. The role has shifted to a client driven model where building a strong client
relationship is key.
C. The business is now product driven where it's all about selling higher
commissioned products.
D. The industry is focusing on reducing costs and finding the most inexpen-
sive investments for clients.: B. The role has shifted to a client driven model where
building a strong client relationship is key.
The role of the Advisor in the financial services industry has changed in recent years
from one that is product driven to one that is client driven. Reference: Module 1,
Section 1
3. Which statements about the evolution of the role of financial advisors is/are
correct?
[I] The financial services industry has moved towards an integrated market
and so have advisors.
[II] Advisors have fewer products and services to offer to clients.
[III] Advisors require a greater level of knowledge to recommend sophisticated
alternatives to clients.
A. I only.
mailto:https://www.stuvia.com/en-us/user/techgrades
,mailto:https://www.stuvia.com/user/techgrades
B. I and III only.
C. II and III only.
mailto:https://www.stuvia.com/en-us/user/techgrades
,mailto:https://www.stuvia.com/user/techgrades
D. I and II only.: B. I and III only.
Advisors have to work within a highly integrated financial services market and
must possess a much higher level of knowledge than before to satisfy increasingly
sophisticated clients.
4. Select the first step in the financial planning process.
A. Analyzing a client's data and information.
B. Recommending strategies to meet goals.
C. Establishing a relationship with the client.
D. Collecting a client's data and information.: C. Establishing a relationship with
the client.
The first step in the financial planning process is for an advisor to establish a
relationship with the client; everything else follows.
5. Select the item that would provide you with quantitative data about your new
client.
A. Profit sharing plan statement.
B. Risk tolerance assessment.
C. Goal setting questionnaire.
mailto:https://www.stuvia.com/en-us/user/techgrades
