CERTIFIED FINANCIAL PLANNER (CFP) EXAM 2025 REVISION QUESTIONS AND ANSWERS

CERTIFIED FINANCIAL PLANNER (CFP)
EXAM 2025 REVISION QUESTIONS AND
ANSWERS
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DETAILED SOLUTIONS, EXPLANATIONS,
WORKINGS AND REFERENCES


March 2025 EXAMINATION PREDICTION

, Certified Financial Planner (CFP) Exam 2025 Revision Questions and Answers covering
key topics from the exam syllabus:



Domain 1: Professional Conduct and Regulation

Question 1: What are the key principles of the CFP Board’s Code of Ethics?
Answer: The six principles are Integrity, Objectivity, Competence, Fairness,
Confidentiality, and Professionalism.

Question 2: What is the fiduciary duty of a CFP® professional?
Answer: A CFP® professional must act in the best interests of the client at all times when
providing financial advice.



Domain 2: General Principles of Financial Planning

Question 3: What are the steps in the financial planning process?
Answer:

1. Understand the client’s financial situation
2. Identify and select goals
3. Analyze current course of action and alternative strategies
4. Develop financial planning recommendations
5. Present recommendations
6. Implement the plan
7. Monitor and update as needed

Question 4: What are the key financial ratios used in personal financial planning?
Answer:

 Liquidity ratio = (Liquid Assets / Monthly Expenses) → Recommended: 3-6
months
 Debt-to-Income ratio = (Total Debt Payments / Gross Income) → Recommended: <
36%
 Savings rate = (Savings / Gross Income) → Recommended: 10-20%



Domain 3: Risk Management & Insurance Planning

Question 5: What are the main types of life insurance?
Answer:

 Term Life – Temporary coverage for a specific period
 Whole Life – Lifetime coverage with cash value accumulation
 Universal Life – Flexible premiums with cash value growth
 Variable Life – Investment-linked life insurance