FPQP All
Which of the following areas does a lender consider when evaluating a borrower? -
answer Capacity
Character
Collateral
Conditions
You plan to contribute $3,000 per year at the end of each year to a tax-deferred
retirement plan.
You plan to retire in 35 years.
You want to have an account worth $1 million at retirement.
What annual rate of return will you need to earn to achieve your goal? - answer10.89%
Set calculator for 1 P/YR, end mode
3000 +/− PMT,
35 N,
1000000 FV,
solve for I/YR = 10.89%.
The marital deduction used when settling the estates of married decedents provides
that - answeran unlimited amount of property may be transferred between spouses to
avoid tax on the estate of the first spouse to die.
Which of the following personal risks are considered potential catastrophic expenses? -
answerMedical expenses
Long-term care
Natural disasters
Lawsuits
Which of the following characteristics apply to a traditional whole life policy? - answerIt
is considered permanent coverage.
It has higher initial premiums than term life.
It offers the potential to build cash value.
It offers level premiums throughout the life of the insured.
Which one of the following is NOT a factor that premiums can be based upon under the
Affordable Care Act? - answerGender
Which one of the following are factor that premiums can be based upon under the
Affordable Care Act? - answerSmoking status
Age
Family size
Geography
, Which of the following statements regarding probate are CORRECT? - answerTestate
estates are subject to probate.
Intestate estates are subject to probate.
Probate requires the appointment of a personal representative.
Which one of the following bonds is selling at a premium? - answer11% Valez Corp.,
BBB rated, current price of $1,001
A premium bond is a bond selling for more than par (also called maturity value) which is
$1,000. The only bond listed selling for more than $1,000 is the Valez Corp. bond at
$1,001.
A $1,000 par value, 15-year bond pays interest of $40 semiannually and is trading at
$970. What is its yield to maturity? - answerSet calculator for 2 P/YR, end mode, C ALL.
970 +/- PV, 40 PMT, 1,000 FV, 15, DOWNSHIFT, N (30 compounding periods) then
solve for I/YR = 8.35%.
Which of the following is a type of exposure that would be covered by a personal
umbrella liability policy? - answerMary is sued by the person with whom she just had an
automobile accident while picking up her son at soccer practice.
The definition of personal financial planning includes which of the following? - answerA
continuous process, subject to review and revision
Helping a client achieve personal and financial goals
An effective personal financial goal includes which of the following? - answerGoals
should be clearly defined.
Goals should be quantified.
7 FP steps umbrellas in a downpour prevent an immense mess - answerU - understand
client personal and financial needs
gather qualitative - client life info
gather quantitative - numbers
I - ID and select goals
A - Analyze
D - Develop recommendations
P - present recommendations
I - implement FP recs
M - monitor progress
Step 3 of the financial planning process: Analysis? - answerDetermining possible
alternative courses of action for the client
Which one of the following best describes fulfilling a fiduciary responsibility? -
answerAlways act in the client's best interest
Which of the following are represented on a cash flow statement? - answerIncome
Which of the following areas does a lender consider when evaluating a borrower? -
answer Capacity
Character
Collateral
Conditions
You plan to contribute $3,000 per year at the end of each year to a tax-deferred
retirement plan.
You plan to retire in 35 years.
You want to have an account worth $1 million at retirement.
What annual rate of return will you need to earn to achieve your goal? - answer10.89%
Set calculator for 1 P/YR, end mode
3000 +/− PMT,
35 N,
1000000 FV,
solve for I/YR = 10.89%.
The marital deduction used when settling the estates of married decedents provides
that - answeran unlimited amount of property may be transferred between spouses to
avoid tax on the estate of the first spouse to die.
Which of the following personal risks are considered potential catastrophic expenses? -
answerMedical expenses
Long-term care
Natural disasters
Lawsuits
Which of the following characteristics apply to a traditional whole life policy? - answerIt
is considered permanent coverage.
It has higher initial premiums than term life.
It offers the potential to build cash value.
It offers level premiums throughout the life of the insured.
Which one of the following is NOT a factor that premiums can be based upon under the
Affordable Care Act? - answerGender
Which one of the following are factor that premiums can be based upon under the
Affordable Care Act? - answerSmoking status
Age
Family size
Geography
, Which of the following statements regarding probate are CORRECT? - answerTestate
estates are subject to probate.
Intestate estates are subject to probate.
Probate requires the appointment of a personal representative.
Which one of the following bonds is selling at a premium? - answer11% Valez Corp.,
BBB rated, current price of $1,001
A premium bond is a bond selling for more than par (also called maturity value) which is
$1,000. The only bond listed selling for more than $1,000 is the Valez Corp. bond at
$1,001.
A $1,000 par value, 15-year bond pays interest of $40 semiannually and is trading at
$970. What is its yield to maturity? - answerSet calculator for 2 P/YR, end mode, C ALL.
970 +/- PV, 40 PMT, 1,000 FV, 15, DOWNSHIFT, N (30 compounding periods) then
solve for I/YR = 8.35%.
Which of the following is a type of exposure that would be covered by a personal
umbrella liability policy? - answerMary is sued by the person with whom she just had an
automobile accident while picking up her son at soccer practice.
The definition of personal financial planning includes which of the following? - answerA
continuous process, subject to review and revision
Helping a client achieve personal and financial goals
An effective personal financial goal includes which of the following? - answerGoals
should be clearly defined.
Goals should be quantified.
7 FP steps umbrellas in a downpour prevent an immense mess - answerU - understand
client personal and financial needs
gather qualitative - client life info
gather quantitative - numbers
I - ID and select goals
A - Analyze
D - Develop recommendations
P - present recommendations
I - implement FP recs
M - monitor progress
Step 3 of the financial planning process: Analysis? - answerDetermining possible
alternative courses of action for the client
Which one of the following best describes fulfilling a fiduciary responsibility? -
answerAlways act in the client's best interest
Which of the following are represented on a cash flow statement? - answerIncome
