Crpc Questions with verified answers
__________ is a coherent set of guidelines for managing financial assets
according to the client's goals and the realities of the investment market.
Ans✓✓✓ Investment policy
"Bridge jobs" describe periods of partial retirement for older workers. Which one
of the following statements regarding bridge jobs is false? Ans✓✓✓ They
generally represent a move up the socioeconomic ladder, from less-skilled to
more-skilled jobs.
"Golden parachute" agreements may include all of the following, except
Ans✓✓✓ reduced pension benefits.
A "rising equity glidepath" typically will lead to a(n) equity exposure over one's
total lifetime. Ans✓✓✓ decreased
A bond has a duration of eight years. If market interest rates rise by 1%, the
percentage price change of the bond is approximately Ans✓✓✓ an 8% decline.
A bond portfolio strategy that splits the portfolio between _____________ bonds
is referred to as a barbell strategy. Ans✓✓✓ short-term and long-term
A direct rollover is a transaction in which benefits from a qualified plan are rolled
over directly to Ans✓✓✓ another eligible retirement plan.
A fundamental duty owed to a client is to always look out for what is in the
client's best interest, what fiduciary duty best personifies this? Ans✓✓✓ duty of
loyalty
,A lump sum payment of the proceeds of a life insurance policy that is made to the
beneficiary upon the insured's death Ans✓✓✓ is generally exempt from income
taxation.
A major responsibility of FINRA is Ans✓✓✓ developing rules and regulations for
its members.
A measurement of total risk is Ans✓✓✓ standard deviation.
A Medicare Part A patient must pay Ans✓✓✓ all costs for a hospital stay beyond
150 days.
A nonspringing durable power of attorney Ans✓✓✓ remains effective after the
principal becomes incapacitated.
A potential client, Ross, is contacted by Amy, an investment professional with a
fiduciary responsibility to her clients. Ross is interested in trading complex options
and is willing to open an account if Amy is knowledgeable about options. Amy
implies to Ross that she is an expert in option trading but, in fact, knows only the
basic elements of it. Looking solely at Amy's lack of competency in this area,
which fiduciary duty has not been met? Ans✓✓✓ Duty of care
A qualified plan must withhold 20% of any distribution that is Ans✓✓✓ going to
be rolled over to another qualified plan within 60-days.
A Roth IRA distribution is considered to be "qualified" if the five-year holding
period has been met and Ans✓✓✓ all of these
,A Roth IRA may be suitable for all of the following individuals except Ans✓✓✓
individuals who believe that their current tax rates are higher than what they will
be in the future.
A springing durable power of attorney Ans✓✓✓ gives the attorney-in-fact
authority only when the principal becomes incompetent.
A standardized Medigap plan is designed to cover Ans✓✓✓ Medicare-approved
charges that are not paid by Medicare.
A trustee-to-trustee transfer is an example of a Ans✓✓✓ direct rollover.
A worker's primary insurance amount (PIA) is the amount they receive from Social
Security Ans✓✓✓ if he or she began payments at full retirement age.
Alicia has contributed $8,000 to a Roth IRA over the past four years. The account
has grown to $10,000 with investment earnings. She is facing a financial bind and
needs to withdraw $9,000. She will have to pay income tax and a 10% penalty on
Ans✓✓✓ $1,000.
All of the following apply to voluntary early retirement programs except
Ans✓✓✓ they should be analyzed based on their future value.
All of the following are characteristics of a qualified longevity annuity contracts
(QLACs) except Ans✓✓✓ the participant can elect either a fixed or variable
annuity.
, All of the following are correct about the surrender charges associated with an
annuity, except Ans✓✓✓ surrender charges are typically a flat dollar amount
that is applied over the life of the contract.
All of the following are correct statements regarding longevity annuities except
Ans✓✓✓ owners must begin receiving income by age 75.
All of the following are disadvantages to performing an indirect rollover from a
qualified plan to an existing IRA except Ans✓✓✓ the entire distribution will be
subject to immediate taxation.
All of the following are examples of asset allocation strategies except Ans✓✓✓
alpha.
All of the following are reasons reverse mortgages may become more common in
the future except Ans✓✓✓ reverse mortgage fees must be rolled into the loan.
All of the following are true about the deductibles that apply to health insurance
except Ans✓✓✓ health insurance deductibles apply per incident.
All of the following are true regarding COBRA-mandated continuation of group
medical coverage for terminated employees except Ans✓✓✓ proof of insurability
is required.
All of the following are true regarding living wills except Ans✓✓✓ they apply to
routine illnesses.
__________ is a coherent set of guidelines for managing financial assets
according to the client's goals and the realities of the investment market.
Ans✓✓✓ Investment policy
"Bridge jobs" describe periods of partial retirement for older workers. Which one
of the following statements regarding bridge jobs is false? Ans✓✓✓ They
generally represent a move up the socioeconomic ladder, from less-skilled to
more-skilled jobs.
"Golden parachute" agreements may include all of the following, except
Ans✓✓✓ reduced pension benefits.
A "rising equity glidepath" typically will lead to a(n) equity exposure over one's
total lifetime. Ans✓✓✓ decreased
A bond has a duration of eight years. If market interest rates rise by 1%, the
percentage price change of the bond is approximately Ans✓✓✓ an 8% decline.
A bond portfolio strategy that splits the portfolio between _____________ bonds
is referred to as a barbell strategy. Ans✓✓✓ short-term and long-term
A direct rollover is a transaction in which benefits from a qualified plan are rolled
over directly to Ans✓✓✓ another eligible retirement plan.
A fundamental duty owed to a client is to always look out for what is in the
client's best interest, what fiduciary duty best personifies this? Ans✓✓✓ duty of
loyalty
,A lump sum payment of the proceeds of a life insurance policy that is made to the
beneficiary upon the insured's death Ans✓✓✓ is generally exempt from income
taxation.
A major responsibility of FINRA is Ans✓✓✓ developing rules and regulations for
its members.
A measurement of total risk is Ans✓✓✓ standard deviation.
A Medicare Part A patient must pay Ans✓✓✓ all costs for a hospital stay beyond
150 days.
A nonspringing durable power of attorney Ans✓✓✓ remains effective after the
principal becomes incapacitated.
A potential client, Ross, is contacted by Amy, an investment professional with a
fiduciary responsibility to her clients. Ross is interested in trading complex options
and is willing to open an account if Amy is knowledgeable about options. Amy
implies to Ross that she is an expert in option trading but, in fact, knows only the
basic elements of it. Looking solely at Amy's lack of competency in this area,
which fiduciary duty has not been met? Ans✓✓✓ Duty of care
A qualified plan must withhold 20% of any distribution that is Ans✓✓✓ going to
be rolled over to another qualified plan within 60-days.
A Roth IRA distribution is considered to be "qualified" if the five-year holding
period has been met and Ans✓✓✓ all of these
,A Roth IRA may be suitable for all of the following individuals except Ans✓✓✓
individuals who believe that their current tax rates are higher than what they will
be in the future.
A springing durable power of attorney Ans✓✓✓ gives the attorney-in-fact
authority only when the principal becomes incompetent.
A standardized Medigap plan is designed to cover Ans✓✓✓ Medicare-approved
charges that are not paid by Medicare.
A trustee-to-trustee transfer is an example of a Ans✓✓✓ direct rollover.
A worker's primary insurance amount (PIA) is the amount they receive from Social
Security Ans✓✓✓ if he or she began payments at full retirement age.
Alicia has contributed $8,000 to a Roth IRA over the past four years. The account
has grown to $10,000 with investment earnings. She is facing a financial bind and
needs to withdraw $9,000. She will have to pay income tax and a 10% penalty on
Ans✓✓✓ $1,000.
All of the following apply to voluntary early retirement programs except
Ans✓✓✓ they should be analyzed based on their future value.
All of the following are characteristics of a qualified longevity annuity contracts
(QLACs) except Ans✓✓✓ the participant can elect either a fixed or variable
annuity.
, All of the following are correct about the surrender charges associated with an
annuity, except Ans✓✓✓ surrender charges are typically a flat dollar amount
that is applied over the life of the contract.
All of the following are correct statements regarding longevity annuities except
Ans✓✓✓ owners must begin receiving income by age 75.
All of the following are disadvantages to performing an indirect rollover from a
qualified plan to an existing IRA except Ans✓✓✓ the entire distribution will be
subject to immediate taxation.
All of the following are examples of asset allocation strategies except Ans✓✓✓
alpha.
All of the following are reasons reverse mortgages may become more common in
the future except Ans✓✓✓ reverse mortgage fees must be rolled into the loan.
All of the following are true about the deductibles that apply to health insurance
except Ans✓✓✓ health insurance deductibles apply per incident.
All of the following are true regarding COBRA-mandated continuation of group
medical coverage for terminated employees except Ans✓✓✓ proof of insurability
is required.
All of the following are true regarding living wills except Ans✓✓✓ they apply to
routine illnesses.
