IFIC - CHAPTER 4 Getting to Know the
Client correctly answered
Which life-cycle stage is distinguished by a lack of liquidity? - correct answer ✔✔Family Commitment
Years
Identify a characteristic of the life-cycle hypothesis - correct answer ✔✔In stage 4, clients are generally
more risk averse than in stage 3.
Determine the life-cycle stage of a client that has a substantial investment portfolio with little in the way
of day-to-day liquidity requirements. - correct answer ✔✔Nearing Retirement.
Determine the life-cycle stage of a client who has successfully planned for medium term goals and has a
new focus on achieving long term goals - correct answer ✔✔Mature Earning Years.
The Financial Planning Pyramid; Financial Products for: Aggressive Investments - correct answer
✔✔Commodities
The Financial Planning Pyramid; Financial Products for: Security - correct answer ✔✔Insurance
The Financial Planning Pyramid; Financial Products for: Conservative Investment - correct answer
✔✔Debentures
The Financial Planning Pyramid; Financial Products for: Very Aggressive Investment - correct answer
✔✔IPO
Identify the criteria that a mutual fund sales representative usually uses to evaluate investment
suitability for a client. - correct answer ✔✔The client's financial goals and objectives
Client correctly answered
Which life-cycle stage is distinguished by a lack of liquidity? - correct answer ✔✔Family Commitment
Years
Identify a characteristic of the life-cycle hypothesis - correct answer ✔✔In stage 4, clients are generally
more risk averse than in stage 3.
Determine the life-cycle stage of a client that has a substantial investment portfolio with little in the way
of day-to-day liquidity requirements. - correct answer ✔✔Nearing Retirement.
Determine the life-cycle stage of a client who has successfully planned for medium term goals and has a
new focus on achieving long term goals - correct answer ✔✔Mature Earning Years.
The Financial Planning Pyramid; Financial Products for: Aggressive Investments - correct answer
✔✔Commodities
The Financial Planning Pyramid; Financial Products for: Security - correct answer ✔✔Insurance
The Financial Planning Pyramid; Financial Products for: Conservative Investment - correct answer
✔✔Debentures
The Financial Planning Pyramid; Financial Products for: Very Aggressive Investment - correct answer
✔✔IPO
Identify the criteria that a mutual fund sales representative usually uses to evaluate investment
suitability for a client. - correct answer ✔✔The client's financial goals and objectives
