FPQP Final Exam Study Guide
Questions and All Correct Answers
2026-2027 Updated.
Comprehensive planning - Answer A client is seeking guidance in all areas of financial
planning. Which of the following most closely describes the type of financial planning the client
wants?
Targeted financial planning - Answer A planner who addresses only the purchase of a first
home for a client is practicing
Mental accounting - Answer 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?
B) Definite - Answer Which of the following is a characteristic of properly stated financial
goals?
A) Broad
B) Definite
C) Flexible
D) General
D) offering suggestions for goals. - Answer 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) restating the clients' goals.
C) paraphrasing what the clients have said.
D) offering suggestions for goals.
B) To accumulate $40,000 in seven years for a down payment on a house - Answer Which of
the following financial goals is written correctly?
A) To invest $5,000 a year for retirement
, B) To accumulate $40,000 in seven years for a down payment on a house
C) To set aside 10% of income to replace a car
D) To accumulate funds within the next 10 years for a child's college expenses
Understanding the client's personal and financial circumstances - Answer During what step in
the financial planning process is the current yield from already-invested assets first identified?
Developing the financial planning recommendations - Answer Asset categories that are
appropriate for the client are determined during which step of the financial planning process?
Monitoring progress and updating - Answer During which step of the financial planning
process is the performance of a client's investments reviewed periodically?
Analyzing the client's current course of action and potential alternate course(s) of action -
Answer Potential problems that might interfere with clients achieving their objectives are
identified in which step in the financial planning process?
B) Health status - Answer Which of these would NOT be considered quantitative data?
A) Life insurance policies
B) Health status
C) Assets and liabilities
D) Brokerage firm statements
Insurance needs
Retirement income objectives
Acceptable investment strategies
Liquid assets available for emergencies - Answer Which of the following is something a
financial planner would want to know when creating a financial plan?
Insurance needs
Retirement income objectives
Acceptable investment strategies
Liquid assets available for emergencies
Presenting the financial planning recommendations - Answer Which of the seven steps of the
financial planning process follows the development of the financial planning recommendations?
Questions and All Correct Answers
2026-2027 Updated.
Comprehensive planning - Answer A client is seeking guidance in all areas of financial
planning. Which of the following most closely describes the type of financial planning the client
wants?
Targeted financial planning - Answer A planner who addresses only the purchase of a first
home for a client is practicing
Mental accounting - Answer 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?
B) Definite - Answer Which of the following is a characteristic of properly stated financial
goals?
A) Broad
B) Definite
C) Flexible
D) General
D) offering suggestions for goals. - Answer 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) restating the clients' goals.
C) paraphrasing what the clients have said.
D) offering suggestions for goals.
B) To accumulate $40,000 in seven years for a down payment on a house - Answer Which of
the following financial goals is written correctly?
A) To invest $5,000 a year for retirement
, B) To accumulate $40,000 in seven years for a down payment on a house
C) To set aside 10% of income to replace a car
D) To accumulate funds within the next 10 years for a child's college expenses
Understanding the client's personal and financial circumstances - Answer During what step in
the financial planning process is the current yield from already-invested assets first identified?
Developing the financial planning recommendations - Answer Asset categories that are
appropriate for the client are determined during which step of the financial planning process?
Monitoring progress and updating - Answer During which step of the financial planning
process is the performance of a client's investments reviewed periodically?
Analyzing the client's current course of action and potential alternate course(s) of action -
Answer Potential problems that might interfere with clients achieving their objectives are
identified in which step in the financial planning process?
B) Health status - Answer Which of these would NOT be considered quantitative data?
A) Life insurance policies
B) Health status
C) Assets and liabilities
D) Brokerage firm statements
Insurance needs
Retirement income objectives
Acceptable investment strategies
Liquid assets available for emergencies - Answer Which of the following is something a
financial planner would want to know when creating a financial plan?
Insurance needs
Retirement income objectives
Acceptable investment strategies
Liquid assets available for emergencies
Presenting the financial planning recommendations - Answer Which of the seven steps of the
financial planning process follows the development of the financial planning recommendations?
