FPQP FINAL TEST PAPER 2026 COMPLETE
QUESTIONS AND CORRECT ANSWERS
GRADED A+
●● A planner who addresses only the purchase of a first home for a
client is practicing
targeted financial planning..
Answer: Targeted planning typically addresses only one or two of a
client's objectives, such as purchasing a first home, caring for an elderly
parent, or reducing a tax burden. The scope of the client-planner
engagement may be revised upon mutual understanding and agreement
between the two parties. In fact, targeted planning often evolves into
more comprehensive financial planning as the client and planner discuss
goals and analyze client information.
●● 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?
Mental accounting.
, Answer: This is an example of mental accounting because Kiara's
irrational financial decision resulted from mentally putting her money
into separate "accounts" based on the functions of those accounts. Self-
control bias involves making poor financial decisions because an
individual lacks self-discipline and favors immediate gratification over
long-term goals. Conservation bias takes place when a person initially
forms a rational view about something (e.g., an investment) but fails to
change that view as new information becomes available. With self-
attribution bias, individuals take credit for their successes and blame
other external influences for their failures. LO 1-5
●● Which of the following is a characteristic of properly stated financial
goals?
Definite.
Answer: Financial goals should be definite in terms of purpose, time
frames, and dollar amounts. Goals that are general (vague), flexible, or
broad (unspecific) should not be part of the financial plan. LO 1-2
●● When helping clients identify goals, financial planners should
practice active listening skills by engaging in all of these except
Offering suggestions for goals..
Answer: Financial planners can facilitate the discussion regarding
clients' goals; however, they should not offer suggestions. Client goals
have to be the result of clients determining what matters most. LO 1-2
QUESTIONS AND CORRECT ANSWERS
GRADED A+
●● A planner who addresses only the purchase of a first home for a
client is practicing
targeted financial planning..
Answer: Targeted planning typically addresses only one or two of a
client's objectives, such as purchasing a first home, caring for an elderly
parent, or reducing a tax burden. The scope of the client-planner
engagement may be revised upon mutual understanding and agreement
between the two parties. In fact, targeted planning often evolves into
more comprehensive financial planning as the client and planner discuss
goals and analyze client information.
●● 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?
Mental accounting.
, Answer: This is an example of mental accounting because Kiara's
irrational financial decision resulted from mentally putting her money
into separate "accounts" based on the functions of those accounts. Self-
control bias involves making poor financial decisions because an
individual lacks self-discipline and favors immediate gratification over
long-term goals. Conservation bias takes place when a person initially
forms a rational view about something (e.g., an investment) but fails to
change that view as new information becomes available. With self-
attribution bias, individuals take credit for their successes and blame
other external influences for their failures. LO 1-5
●● Which of the following is a characteristic of properly stated financial
goals?
Definite.
Answer: Financial goals should be definite in terms of purpose, time
frames, and dollar amounts. Goals that are general (vague), flexible, or
broad (unspecific) should not be part of the financial plan. LO 1-2
●● When helping clients identify goals, financial planners should
practice active listening skills by engaging in all of these except
Offering suggestions for goals..
Answer: Financial planners can facilitate the discussion regarding
clients' goals; however, they should not offer suggestions. Client goals
have to be the result of clients determining what matters most. LO 1-2
