FP1 / FULL PRACTICE EXAM NEWEST 2025
ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+
Save
Terms in this set (80)
Which statement A. Professionalism is displayed by being competent
regarding the traits or and knowledgeable.
values of financial advisors
is correct? Professionalism is displayed by being competent and
knowledgeable by keeping up to date regarding key
A. Professionalism is aspects of the financial services industry.
displayed by being
competent and
knowledgeable.
B. Diligence is displayed
by being honest with
clients.
C. Objectivity requires
respecting clients' privacy.
D. Confidentiality requires
the advisor to make
impartial
recommendations.
,By and large, what B. The role has shifted to a client driven model where
statement below is true in building a strong client relationship is key.
regards to the current
landscape in Canada for The role of the Advisor in the financial services
financial advisors? industry has changed in recent years from one that is
product driven to one that is client driven. Reference:
A. There has been a Module 1, Section 1
dramatic shift to fee based
advice as it's perceived as
unbiased.
B. The role has shifted to a
client driven model where
building a strong client
relationship is key.
C. The business is now
product driven where it's
all about selling higher
commissioned products.
D. The industry is focusing
on reducing costs and
finding the most
inexpensive investments
for clients.
,Which statements about B. I and III only.
the evolution of the role
of financial advisors is/are Advisors have to work within a highly integrated
correct? financial services market and must possess a much
higher level of knowledge than before to satisfy
[I] The financial services increasingly sophisticated clients.
industry has moved
towards an integrated
market and so have
advisors.
[II] Advisors have fewer
products and services to
offer to clients.
[III] Advisors require a
greater level of
knowledge to recommend
sophisticated alternatives
to clients.
A. I only.
B. I and III only.
C. II and III only.
D. I and II only.
Select the first step in the C. Establishing a relationship with the client.
financial planning process.
The first step in the financial planning process is for an
A. Analyzing a client's data advisor to establish a relationship with the client;
and information. everything else follows.
B. Recommending
strategies to meet goals.
C. Establishing a
relationship with the client.
D. Collecting a client's
data and information.
, Select the item that would A. Profit sharing plan statement.
provide you with
quantitative data about Only the profit-sharing statement would provide you
your new client. with quantitative data, i.e. numeric or other specific
data that can be quantified. The other options would
A. Profit sharing plan provide qualitative data. Reference: Module 1, Section
statement. 2.
B. Risk tolerance
assessment.
C. Goal setting
questionnaire.
D. Fees and services
agreement.
Your client's goal is to C. Increase income and reduce expenses.
improve her cash flow.
Select the strategy that Cash flow is the amount of money available for
will be most effective in investment or other purposes. In this scenario, the
helping her to reach her client is best able to free up money for investments by
goal. increasing the amount of money coming in (income)
and reducing the amount of money going out
A. Improve investment (expenses). While (b) would improve cash flow by
return. reducing some expenses, the addition of the increase
B. Reduce flexible in income in (c) makes it more effective.
expenses and lengthen
time frame for
investments.
C. Increase income and
reduce expenses.
D. Contribute regularly to
an emergency fund.
ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+
Save
Terms in this set (80)
Which statement A. Professionalism is displayed by being competent
regarding the traits or and knowledgeable.
values of financial advisors
is correct? Professionalism is displayed by being competent and
knowledgeable by keeping up to date regarding key
A. Professionalism is aspects of the financial services industry.
displayed by being
competent and
knowledgeable.
B. Diligence is displayed
by being honest with
clients.
C. Objectivity requires
respecting clients' privacy.
D. Confidentiality requires
the advisor to make
impartial
recommendations.
,By and large, what B. The role has shifted to a client driven model where
statement below is true in building a strong client relationship is key.
regards to the current
landscape in Canada for The role of the Advisor in the financial services
financial advisors? industry has changed in recent years from one that is
product driven to one that is client driven. Reference:
A. There has been a Module 1, Section 1
dramatic shift to fee based
advice as it's perceived as
unbiased.
B. The role has shifted to a
client driven model where
building a strong client
relationship is key.
C. The business is now
product driven where it's
all about selling higher
commissioned products.
D. The industry is focusing
on reducing costs and
finding the most
inexpensive investments
for clients.
,Which statements about B. I and III only.
the evolution of the role
of financial advisors is/are Advisors have to work within a highly integrated
correct? financial services market and must possess a much
higher level of knowledge than before to satisfy
[I] The financial services increasingly sophisticated clients.
industry has moved
towards an integrated
market and so have
advisors.
[II] Advisors have fewer
products and services to
offer to clients.
[III] Advisors require a
greater level of
knowledge to recommend
sophisticated alternatives
to clients.
A. I only.
B. I and III only.
C. II and III only.
D. I and II only.
Select the first step in the C. Establishing a relationship with the client.
financial planning process.
The first step in the financial planning process is for an
A. Analyzing a client's data advisor to establish a relationship with the client;
and information. everything else follows.
B. Recommending
strategies to meet goals.
C. Establishing a
relationship with the client.
D. Collecting a client's
data and information.
, Select the item that would A. Profit sharing plan statement.
provide you with
quantitative data about Only the profit-sharing statement would provide you
your new client. with quantitative data, i.e. numeric or other specific
data that can be quantified. The other options would
A. Profit sharing plan provide qualitative data. Reference: Module 1, Section
statement. 2.
B. Risk tolerance
assessment.
C. Goal setting
questionnaire.
D. Fees and services
agreement.
Your client's goal is to C. Increase income and reduce expenses.
improve her cash flow.
Select the strategy that Cash flow is the amount of money available for
will be most effective in investment or other purposes. In this scenario, the
helping her to reach her client is best able to free up money for investments by
goal. increasing the amount of money coming in (income)
and reducing the amount of money going out
A. Improve investment (expenses). While (b) would improve cash flow by
return. reducing some expenses, the addition of the increase
B. Reduce flexible in income in (c) makes it more effective.
expenses and lengthen
time frame for
investments.
C. Increase income and
reduce expenses.
D. Contribute regularly to
an emergency fund.
