FPQP - Module 1 Exam Questions with Correct Answers 100% Verified By Experts| Latest
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A Personal Financial Planning
a. is a collaborative process
b. is primarily needed by wealthy individuals
c. does not need monitoring if done correctly
d. involves only insurance, investment, and retirement planning
C Which one of the following is a correctly written financial goal?
a. to set aside 10% of income for the purpose of replacing the automobile currently owned
b. to accumulate funds within the next 10 years for college expenses for a son
c. to accumulate $40,000 in five years for a house down payment
d. to invest $5,000 per year for retirement
C Asset categories that are appropriate for the client are determined in which one of the
following steps in the financial planning process?
a. Understanding the clients personal and financial circumstances
b. Analyzing the clients current course of action and potential alternate course of action
c. Developing the financial planning recommendations
d. Implementing the financial planning recommendations
B Kiara has accumulated $10,000 in a savings account over the last few years and has
earmarked that money as a down payment on a luxury boat. Her central air conditioner breaks
and requires $5,000 in repairs. Kiara is reluctant to spend the money in her savings account to
make the repairs because she wants to use that money for the boat down payment. Instead,
,she puts the $5,000 repair charge on her credit card at an annual interest rate of 23%. This is an
example of which of these behaviors?
a. Confirmation bias
b. Mental accounting
c. Self- control bias
d. Conservation bias
B When helping clients identify goals, financial planners should practice active listening skills
by engaging in all of these except
a. summarizing what the planner has heard
b. offering suggestions for goals
c. restating the clients goals
d. paraphrasing what the clients have said
A Which of the following financial goals is written correctly?
a. to accumulate $40,000 in seven years for a down payment on a house
b. To set aside 10% of income to replace a car
c. To invest $5,000 a year for retirement
d. To accumulate funds within the next 10 years for a child's college expenses
C During which of the following steps in the financial planning process is the current yield
from already-invested assets first identified?
a. Developing the financial planning recommendations
b. Implementing the financial planning recommendations
, c. Understanding the client's personal and financial circumstances
d. Analyzing the client's current course of action and potential alternate course(s) of action
B Potential problems that might interfere with clients achieving their objectives are
identified in which of the following steps in the financial planning process?
a. Implementing the financial planning recommendations
b. Analyzing the client's current course of action and potential alternate course(s) of action
c. Understanding the client's personal and financial circumstances
d. Developing the financial planning recommendations
D Which of these would NOT be considered quantitative data?
a. Brokerage firm statements
b. Life insurance policies
c. Assets and liabilities
d. Health status
B Which of the following is something a financial planner would want to know when
creating a financial plan?
I- Insurance needs
II- Retirement income objectives
III- Acceptable investment strategies
IV- Liquid assets available for emergencies
a. I, II, and III
b. I, II, III, and IV
c. I and II
Update Guaranteed Success
A Personal Financial Planning
a. is a collaborative process
b. is primarily needed by wealthy individuals
c. does not need monitoring if done correctly
d. involves only insurance, investment, and retirement planning
C Which one of the following is a correctly written financial goal?
a. to set aside 10% of income for the purpose of replacing the automobile currently owned
b. to accumulate funds within the next 10 years for college expenses for a son
c. to accumulate $40,000 in five years for a house down payment
d. to invest $5,000 per year for retirement
C Asset categories that are appropriate for the client are determined in which one of the
following steps in the financial planning process?
a. Understanding the clients personal and financial circumstances
b. Analyzing the clients current course of action and potential alternate course of action
c. Developing the financial planning recommendations
d. Implementing the financial planning recommendations
B Kiara has accumulated $10,000 in a savings account over the last few years and has
earmarked that money as a down payment on a luxury boat. Her central air conditioner breaks
and requires $5,000 in repairs. Kiara is reluctant to spend the money in her savings account to
make the repairs because she wants to use that money for the boat down payment. Instead,
,she puts the $5,000 repair charge on her credit card at an annual interest rate of 23%. This is an
example of which of these behaviors?
a. Confirmation bias
b. Mental accounting
c. Self- control bias
d. Conservation bias
B When helping clients identify goals, financial planners should practice active listening skills
by engaging in all of these except
a. summarizing what the planner has heard
b. offering suggestions for goals
c. restating the clients goals
d. paraphrasing what the clients have said
A Which of the following financial goals is written correctly?
a. to accumulate $40,000 in seven years for a down payment on a house
b. To set aside 10% of income to replace a car
c. To invest $5,000 a year for retirement
d. To accumulate funds within the next 10 years for a child's college expenses
C During which of the following steps in the financial planning process is the current yield
from already-invested assets first identified?
a. Developing the financial planning recommendations
b. Implementing the financial planning recommendations
, c. Understanding the client's personal and financial circumstances
d. Analyzing the client's current course of action and potential alternate course(s) of action
B Potential problems that might interfere with clients achieving their objectives are
identified in which of the following steps in the financial planning process?
a. Implementing the financial planning recommendations
b. Analyzing the client's current course of action and potential alternate course(s) of action
c. Understanding the client's personal and financial circumstances
d. Developing the financial planning recommendations
D Which of these would NOT be considered quantitative data?
a. Brokerage firm statements
b. Life insurance policies
c. Assets and liabilities
d. Health status
B Which of the following is something a financial planner would want to know when
creating a financial plan?
I- Insurance needs
II- Retirement income objectives
III- Acceptable investment strategies
IV- Liquid assets available for emergencies
a. I, II, and III
b. I, II, III, and IV
c. I and II
