CRPC EXAM 2025 WITH QUESTIONS AND VERIFIED ANSWERS WITH
RATIONALE |ALREADY GRADED A+
A worker's primary insurance amount (PIA) is the amount they receive from Social Security
- (ANSWER)if he or she began payments at full retirement age.
For a worker whose full retirement age is 66 or later, the annual delayed retirement credit
percentage for the years you delay receipt of benefits beyond (FRA) is - (ANSWER)8
Delaying receipt of benefits (for example until age 70) will result in all of the following
except - (ANSWER)permanently reduced benefit amount.
#$
Ann has reached her full retirement age (FRA) of 66 in 2020. She can elect to receive $1,000 %
now, or delay receipt by two years. She expects to live until age 90. Ignoring outside factors, ^
when should she begin her benefits? - (ANSWER)two years from now &*
()_
Michael, a 62-year-old single man, is considering beginning his Social Security benefits to +
supplement his income of $14,000 per year. How much will he lose in Social Security
benefits due to the earned income restrictions? - (ANSWER)0
If provisional income exceeds all the thresholds given, then a maximum of ___________ of
Social Security benefits are subject to taxation. - (ANSWER)85%
Brent and Carol are married and file jointly. They have an AGI of $50,000 and they receive a
combined Social Security benefit of $15,000. They have no tax-exempt income. What is the
maximum percentage of their Social Security benefit that will be subject to taxation? -
(ANSWER)85
Spousal retirement benefits can be claimed as early as age ______. - (ANSWER)62
Jeff and Betsy both attained their FRA in time to employ the "restricted application for
spouses" strategy. Jeff's PIA at his FRA was $2,000 and Betsy's was $1,200. If they employ
the "restricted application for spouses" strategy, Betsy will begin receiving $_____ per
month. - (ANSWER)1,200
Carla is collecting $600 per month from a government pension and is also eligible to
receive a Social Security spousal benefit of $1,000 per month. Due to the GPO, her Social
Security spousal benefit will be reduced to ____________. - (ANSWER)600
,CRPC EXAM 2025 WITH QUESTIONS AND VERIFIED ANSWERS WITH
RATIONALE |ALREADY GRADED A+
David began receiving Social Security benefits in June 2020. He later learned that he should
have delayed receipt of his benefits until a later age. He has until _______ to pay back all
payments and refile for increase benefits at a future date. - (ANSWER)June 2021
Jerry was born in 1954. What age does Social Security consider to be his full retirement age
(FRA)? - (ANSWER)66
Mary is 69 years old. She is receiving $1,800 per month in Social Security. Her husband
Ralph, age 67, who has not worked enough quarters outside the home to be covered in his #$
own right, receives 50% of what Mary receives each month ($900). Assume that Mary dies %
tomorrow. What will Ralph's Social Security benefit be? Assume he has reached his ^
survivor FRA. - (ANSWER)1,800 &*
()_
Bob and Helen just won the lottery. The benefit this year will be $50,000, and it will increase +
over the next 19 years. Bob's monthly Social Security benefit is $1,800; Helen's monthly
Social Security benefit is $1,200. Bob is age 68, and Helen is age 69. Which one of the
following is a correct statement about Bob and Helen's old-age Social Security benefits? -
(ANSWER)Up to 85% of their Social Security benefit must be included in gross income.
Henry and his wife Etta will both reach their FRAs this month, and they both plan to begin
receiving Social Security benefits next month. Etta's primary insurance amount (PIA) is
$1,900; Henry's PIA is $975. What will their maximum Social Security benefit be? -
(ANSWER)They will both receive their respective PIAs.
Which one of the following is a correct statement about old-age Social Security benefits? -
(ANSWER)Old-age Social Security benefits are not reduced for persons who have attained
their Social Security FRA regardless of the amount of earned income received.
Jill and Mark are celebrating their 20th wedding anniversary, receiving a 20-year watch from
their employer, and reaching FRA all on the same day with a trip to the beach. Which of the
following statements correctly describe the Social Security benefit Jill is eligible to receive?
- (ANSWER)100% of her own benefit
An individual's Social Security payment amount will be adjusted annually to account for
increases in inflation as measured by the _____________. - (ANSWER)CPI-W
Higher income earners will have an income replacement ratio that is - (ANSWER)lower than
low income earners.
,CRPC EXAM 2025 WITH QUESTIONS AND VERIFIED ANSWERS WITH
RATIONALE |ALREADY GRADED A+
On average, Social Security represents ______ of the income of the elderly. - (ANSWER)33
Tom, 59, is a widower and is receiving a widower's benefit on his deceased spouse's
record. Tom is considering getting remarried. As a planner, you should suggest which one
of the following? - (ANSWER)He should wait until age 60 to remarry.
Which one of the following counts as "earnings" for the Social Security earnings test? -
(ANSWER)Self-employment net earnings #$
%
Carl is going to reach FRA later in the current year. He has begun Social Security benefits ^
but is still working. His Social Security benefits will - (ANSWER)be reduced $1 for every $3 &*
earned above the earnings cap. ()_
+
Social Security payments are - (ANSWER)taxable if your provisional income exceeds the
applicable threshold.
Social Security provides individuals with protection against which of the following risks? -
(ANSWER)All of these
Social Security began as a program to provide retirement income, but has been expanded
to provide all of the following income except - (ANSWER)survivor benefits to spouse caring
for a child under 19.
Gary reached FRA this year (2020) and filed for his Social Security benefits. His wife, Mary,
is 62 and wishes to file for spousal benefits when she turns 63 later in 2020. If Gary's full
benefit is $2,000, what will Mary's benefit be? - (ANSWER)725
Tammy doesn't begin her Social Security benefit at FRA (age 66), instead opting to delay
while collecting delayed retirement credits. When she reaches age 68, however, she
encounters financial difficulty and must file for her benefits. How much will her payment
have increased? - (ANSWER)16
It is January 15, 2020. Bill and Mary both attained age 66 in 2019. They want to employ the
restricted application strategy. Bill is the higher income earner. What can be said about
their options? - (ANSWER)Bill should file a restricted application for spousal benefits
because he is the higher income earner.
, CRPC EXAM 2025 WITH QUESTIONS AND VERIFIED ANSWERS WITH
RATIONALE |ALREADY GRADED A+
Margaret is confused about her options and takes a friend's advice to file and begin
collecting benefits at age 62. Two years later, she attends one of your seminars on Social
Security and realizes that this was a mistake, as she has sufficient personal assets to get
her through until at least age 70 and her life expectancy is nearly 100. What can you
suggest to her? - (ANSWER)She can voluntarily suspend payments, keep the benefits she
has received, and resume payments later at an increased rate.
Which one of the following is not an objective of an investment policy? - (ANSWER)To
select individual securities #$
%
Which one of the following is not an appropriate element of an investment policy? - ^
(ANSWER)The portfolio should maximize return and minimize risk. &*
()_
Which one of the following is not one of the steps in the asset allocation process? - +
(ANSWER)Establish guidelines for reaching goals
An investor has a 6%, 10,000 par value bond that matures in 15 years. The yield to maturity
on similar bonds currently is 5.5%. What is the price of this bond? - (ANSWER)$10,506.23
The Sharpe ratio measures - (ANSWER)total risk as measured by standard deviation.
Growth stocks are characterized by - (ANSWER)high P/E ratios.
Which one of the following is not a strategy associated with the practice of tactical asset
allocation? - (ANSWER)Buying and holding an S&P 500 Index fund
Assume the standard deviation for a stock is 10 and its mean return is 14%. What is the
range of returns you would expect 68% of the time? - (ANSWER)4% and 24%
Stock A has an expected return of 15% and a standard deviation of 7.5%. Stock B has an
expected return of 18% and a standard deviation of 9%. Based on the coefficient of
variation, which stock has more relative risk? - (ANSWER)Both have the same relative risk.
Stock B has a beta of 1.2. If the market rises by 10%, Stock B can be expected to -
(ANSWER)rise by 12%.
As an investor, you are optimistic about the near-term prospects of the market. To enhance
portfolio returns you would - (ANSWER)choose securities with betas greater than 1.0.
RATIONALE |ALREADY GRADED A+
A worker's primary insurance amount (PIA) is the amount they receive from Social Security
- (ANSWER)if he or she began payments at full retirement age.
For a worker whose full retirement age is 66 or later, the annual delayed retirement credit
percentage for the years you delay receipt of benefits beyond (FRA) is - (ANSWER)8
Delaying receipt of benefits (for example until age 70) will result in all of the following
except - (ANSWER)permanently reduced benefit amount.
#$
Ann has reached her full retirement age (FRA) of 66 in 2020. She can elect to receive $1,000 %
now, or delay receipt by two years. She expects to live until age 90. Ignoring outside factors, ^
when should she begin her benefits? - (ANSWER)two years from now &*
()_
Michael, a 62-year-old single man, is considering beginning his Social Security benefits to +
supplement his income of $14,000 per year. How much will he lose in Social Security
benefits due to the earned income restrictions? - (ANSWER)0
If provisional income exceeds all the thresholds given, then a maximum of ___________ of
Social Security benefits are subject to taxation. - (ANSWER)85%
Brent and Carol are married and file jointly. They have an AGI of $50,000 and they receive a
combined Social Security benefit of $15,000. They have no tax-exempt income. What is the
maximum percentage of their Social Security benefit that will be subject to taxation? -
(ANSWER)85
Spousal retirement benefits can be claimed as early as age ______. - (ANSWER)62
Jeff and Betsy both attained their FRA in time to employ the "restricted application for
spouses" strategy. Jeff's PIA at his FRA was $2,000 and Betsy's was $1,200. If they employ
the "restricted application for spouses" strategy, Betsy will begin receiving $_____ per
month. - (ANSWER)1,200
Carla is collecting $600 per month from a government pension and is also eligible to
receive a Social Security spousal benefit of $1,000 per month. Due to the GPO, her Social
Security spousal benefit will be reduced to ____________. - (ANSWER)600
,CRPC EXAM 2025 WITH QUESTIONS AND VERIFIED ANSWERS WITH
RATIONALE |ALREADY GRADED A+
David began receiving Social Security benefits in June 2020. He later learned that he should
have delayed receipt of his benefits until a later age. He has until _______ to pay back all
payments and refile for increase benefits at a future date. - (ANSWER)June 2021
Jerry was born in 1954. What age does Social Security consider to be his full retirement age
(FRA)? - (ANSWER)66
Mary is 69 years old. She is receiving $1,800 per month in Social Security. Her husband
Ralph, age 67, who has not worked enough quarters outside the home to be covered in his #$
own right, receives 50% of what Mary receives each month ($900). Assume that Mary dies %
tomorrow. What will Ralph's Social Security benefit be? Assume he has reached his ^
survivor FRA. - (ANSWER)1,800 &*
()_
Bob and Helen just won the lottery. The benefit this year will be $50,000, and it will increase +
over the next 19 years. Bob's monthly Social Security benefit is $1,800; Helen's monthly
Social Security benefit is $1,200. Bob is age 68, and Helen is age 69. Which one of the
following is a correct statement about Bob and Helen's old-age Social Security benefits? -
(ANSWER)Up to 85% of their Social Security benefit must be included in gross income.
Henry and his wife Etta will both reach their FRAs this month, and they both plan to begin
receiving Social Security benefits next month. Etta's primary insurance amount (PIA) is
$1,900; Henry's PIA is $975. What will their maximum Social Security benefit be? -
(ANSWER)They will both receive their respective PIAs.
Which one of the following is a correct statement about old-age Social Security benefits? -
(ANSWER)Old-age Social Security benefits are not reduced for persons who have attained
their Social Security FRA regardless of the amount of earned income received.
Jill and Mark are celebrating their 20th wedding anniversary, receiving a 20-year watch from
their employer, and reaching FRA all on the same day with a trip to the beach. Which of the
following statements correctly describe the Social Security benefit Jill is eligible to receive?
- (ANSWER)100% of her own benefit
An individual's Social Security payment amount will be adjusted annually to account for
increases in inflation as measured by the _____________. - (ANSWER)CPI-W
Higher income earners will have an income replacement ratio that is - (ANSWER)lower than
low income earners.
,CRPC EXAM 2025 WITH QUESTIONS AND VERIFIED ANSWERS WITH
RATIONALE |ALREADY GRADED A+
On average, Social Security represents ______ of the income of the elderly. - (ANSWER)33
Tom, 59, is a widower and is receiving a widower's benefit on his deceased spouse's
record. Tom is considering getting remarried. As a planner, you should suggest which one
of the following? - (ANSWER)He should wait until age 60 to remarry.
Which one of the following counts as "earnings" for the Social Security earnings test? -
(ANSWER)Self-employment net earnings #$
%
Carl is going to reach FRA later in the current year. He has begun Social Security benefits ^
but is still working. His Social Security benefits will - (ANSWER)be reduced $1 for every $3 &*
earned above the earnings cap. ()_
+
Social Security payments are - (ANSWER)taxable if your provisional income exceeds the
applicable threshold.
Social Security provides individuals with protection against which of the following risks? -
(ANSWER)All of these
Social Security began as a program to provide retirement income, but has been expanded
to provide all of the following income except - (ANSWER)survivor benefits to spouse caring
for a child under 19.
Gary reached FRA this year (2020) and filed for his Social Security benefits. His wife, Mary,
is 62 and wishes to file for spousal benefits when she turns 63 later in 2020. If Gary's full
benefit is $2,000, what will Mary's benefit be? - (ANSWER)725
Tammy doesn't begin her Social Security benefit at FRA (age 66), instead opting to delay
while collecting delayed retirement credits. When she reaches age 68, however, she
encounters financial difficulty and must file for her benefits. How much will her payment
have increased? - (ANSWER)16
It is January 15, 2020. Bill and Mary both attained age 66 in 2019. They want to employ the
restricted application strategy. Bill is the higher income earner. What can be said about
their options? - (ANSWER)Bill should file a restricted application for spousal benefits
because he is the higher income earner.
, CRPC EXAM 2025 WITH QUESTIONS AND VERIFIED ANSWERS WITH
RATIONALE |ALREADY GRADED A+
Margaret is confused about her options and takes a friend's advice to file and begin
collecting benefits at age 62. Two years later, she attends one of your seminars on Social
Security and realizes that this was a mistake, as she has sufficient personal assets to get
her through until at least age 70 and her life expectancy is nearly 100. What can you
suggest to her? - (ANSWER)She can voluntarily suspend payments, keep the benefits she
has received, and resume payments later at an increased rate.
Which one of the following is not an objective of an investment policy? - (ANSWER)To
select individual securities #$
%
Which one of the following is not an appropriate element of an investment policy? - ^
(ANSWER)The portfolio should maximize return and minimize risk. &*
()_
Which one of the following is not one of the steps in the asset allocation process? - +
(ANSWER)Establish guidelines for reaching goals
An investor has a 6%, 10,000 par value bond that matures in 15 years. The yield to maturity
on similar bonds currently is 5.5%. What is the price of this bond? - (ANSWER)$10,506.23
The Sharpe ratio measures - (ANSWER)total risk as measured by standard deviation.
Growth stocks are characterized by - (ANSWER)high P/E ratios.
Which one of the following is not a strategy associated with the practice of tactical asset
allocation? - (ANSWER)Buying and holding an S&P 500 Index fund
Assume the standard deviation for a stock is 10 and its mean return is 14%. What is the
range of returns you would expect 68% of the time? - (ANSWER)4% and 24%
Stock A has an expected return of 15% and a standard deviation of 7.5%. Stock B has an
expected return of 18% and a standard deviation of 9%. Based on the coefficient of
variation, which stock has more relative risk? - (ANSWER)Both have the same relative risk.
Stock B has a beta of 1.2. If the market rises by 10%, Stock B can be expected to -
(ANSWER)rise by 12%.
As an investor, you are optimistic about the near-term prospects of the market. To enhance
portfolio returns you would - (ANSWER)choose securities with betas greater than 1.0.
