CRPC TEST BANK QUESTIONS WITH
VERIFIED ANSWERS FULL REVIEW
●● 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.
Answer: 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
Answer: 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
Answer: 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.
Answer: 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
Answer: 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
Answer: 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
VERIFIED ANSWERS FULL REVIEW
●● 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.
Answer: 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
Answer: 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
Answer: 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.
Answer: 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
Answer: 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
Answer: 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
