CRPC All Module Quiz's Combined
Exam Questions with Complete
Solutions134
Prior to providing retirement planning services, the scope of the services offered should be
mutually defined by the planner and client. This is a part of Step 1: Understanding the client's
personal and financial circumstances. This initial discussion should NOT include which one of
the following topics?
A)
Identifying specific funds in which to invest
B)
Disclosing the planner's compensation arrangements
C)
Identifying the services to be provided
D)
Establishing the duration of the services and engagement - ANSWERS-A) Identifying specific
funds in which to invest
The process of data gathering is a portion of the first step of the planning process. All of the
following are examples of data to be gathered EXCEPT
A)
the client's ability to purchase health insurance.
B)
the balances in retirement accounts.
C)
investment risk tolerance.
,D)
income sources and amounts. - ANSWERS-A) the client's ability to purchase health insurance.
Frank and Brenda Elliot own $20,000 in cash equivalents, $100,000 in invested assets, and
$290,000 in use assets. The Elliots have an outstanding mortgage of $150,000 and owe $3,500
in credit card debt. They paid $12,300 in taxes this year. What is the Elliots' net worth?
A)
$236,500
B)
$256,500
C)
$260,000
D)
$410,000 - ANSWERS-B) $256,500
Andy and Lori Cookston had a combined gross salary of $85,000 this year. Other cash inflows
amounted to $9,800. Their fixed cash outflows were $26,300, and their variable cash outflows
were $64,700. Andy's IRA balance is $45,300. What was the Cookstons' net cash flow for the
year?
A)
$68,500
B)
$6,000 deficit
C)
$30,100
D)
$3,800 - ANSWERS-D)$3,800
,All of the following are considered foundation financial goals EXCEPT
A)
emergency funds.
B)
helping grandchildren with college.
C)
life, health, and automobile insurance.
D)
food, clothing, and shelter. - ANSWERS-B)helping grandchildren with college.
Which one of the following is an incorrect statement regarding retirement spending habits?
A)
Expenditures for retirement plan contributions cease
B)
Travel and recreation costs increase
C)
Automobile-related costs increase
D)
Health costs increase - ANSWERS-C) Automobile-related costs increase
Which of these are true concerning longevity?
Most life expectancy tables will give very similar results.
The life expectancy of the lowest quartile of income is increasing about one year per decade.
The life expectancy of the highest quartile of income is increasing about two years per decade..
The differences in life expectancy were correlated with access to medical care and
environmental differences.
, A)
II and III
B)
I and IV
C)
III and IV
D)
I and II - ANSWERS-A) II and III
It is anticipated that the percentage of people who continue to work after they reach age 65 or
66 will increase in the future. All of the following are reasons for this increase EXCEPT
A)
wages and salaries earned during retirement can increase retirement income.
B)
almost all categories of living expenses increase during retirement years.
C)
people's life spans are expected to increase, so the need for retirement income must increase.
D)
Social Security benefits are increased for people who delay receipt of benefits beyond their
Social Security full retirement age. - ANSWERS-B) almost all categories of living expenses
increase during retirement years.
When a client's funds are insufficient to attain retirement goals, it is appropriate for the planner
to suggest all of the following EXCEPT
A)
retiring later than initially planned.
Exam Questions with Complete
Solutions134
Prior to providing retirement planning services, the scope of the services offered should be
mutually defined by the planner and client. This is a part of Step 1: Understanding the client's
personal and financial circumstances. This initial discussion should NOT include which one of
the following topics?
A)
Identifying specific funds in which to invest
B)
Disclosing the planner's compensation arrangements
C)
Identifying the services to be provided
D)
Establishing the duration of the services and engagement - ANSWERS-A) Identifying specific
funds in which to invest
The process of data gathering is a portion of the first step of the planning process. All of the
following are examples of data to be gathered EXCEPT
A)
the client's ability to purchase health insurance.
B)
the balances in retirement accounts.
C)
investment risk tolerance.
,D)
income sources and amounts. - ANSWERS-A) the client's ability to purchase health insurance.
Frank and Brenda Elliot own $20,000 in cash equivalents, $100,000 in invested assets, and
$290,000 in use assets. The Elliots have an outstanding mortgage of $150,000 and owe $3,500
in credit card debt. They paid $12,300 in taxes this year. What is the Elliots' net worth?
A)
$236,500
B)
$256,500
C)
$260,000
D)
$410,000 - ANSWERS-B) $256,500
Andy and Lori Cookston had a combined gross salary of $85,000 this year. Other cash inflows
amounted to $9,800. Their fixed cash outflows were $26,300, and their variable cash outflows
were $64,700. Andy's IRA balance is $45,300. What was the Cookstons' net cash flow for the
year?
A)
$68,500
B)
$6,000 deficit
C)
$30,100
D)
$3,800 - ANSWERS-D)$3,800
,All of the following are considered foundation financial goals EXCEPT
A)
emergency funds.
B)
helping grandchildren with college.
C)
life, health, and automobile insurance.
D)
food, clothing, and shelter. - ANSWERS-B)helping grandchildren with college.
Which one of the following is an incorrect statement regarding retirement spending habits?
A)
Expenditures for retirement plan contributions cease
B)
Travel and recreation costs increase
C)
Automobile-related costs increase
D)
Health costs increase - ANSWERS-C) Automobile-related costs increase
Which of these are true concerning longevity?
Most life expectancy tables will give very similar results.
The life expectancy of the lowest quartile of income is increasing about one year per decade.
The life expectancy of the highest quartile of income is increasing about two years per decade..
The differences in life expectancy were correlated with access to medical care and
environmental differences.
, A)
II and III
B)
I and IV
C)
III and IV
D)
I and II - ANSWERS-A) II and III
It is anticipated that the percentage of people who continue to work after they reach age 65 or
66 will increase in the future. All of the following are reasons for this increase EXCEPT
A)
wages and salaries earned during retirement can increase retirement income.
B)
almost all categories of living expenses increase during retirement years.
C)
people's life spans are expected to increase, so the need for retirement income must increase.
D)
Social Security benefits are increased for people who delay receipt of benefits beyond their
Social Security full retirement age. - ANSWERS-B) almost all categories of living expenses
increase during retirement years.
When a client's funds are insufficient to attain retirement goals, it is appropriate for the planner
to suggest all of the following EXCEPT
A)
retiring later than initially planned.
