CFP Practice Questions: Master the Exam with Verified Q&A | UPDATED 2025/26.
About This Resource:
This CFP Practice Questions Pack is built for aspiring Certified Financial Planners® preparing for the
official exam. Covering all eight key content domains, this resource includes exam-style questions,
detailed answer rationales, and up-to-date information aligned with the CFP Board’s current learning
objectives. Ideal for self-assessment, review, or full exam prep.
A CFP practitioner is required to have ____continuing education hours per reporting period in order to
renew their certification
a) 20
b) 25
c) 30
d) 40 - ✔✔-C) 30
A Change in quantity supplied is identified bu which of the following?
A) Shifting the demand curve
B) Shifting the supply Curve
C) Movement along the supply curve
D) Movement along the demand curve - ✔✔-C- This is the willingness to offer the same product at
different prices.
A provision in a life insurance policy that prevents an insurer from revoking coverage because of alleged
misstatements by an insured after a specified period usually two years, is referred to as
A) Indemnity clause
B) Misstatement of age clause
C) Statute of frauds clause
D) Incontestable clause - ✔✔-D
A recession is a decline in real GDP for ______ or more consecutive quarters, A depression is a decline in
real GDP for ____ or more consecutive quarters
a) 2,4
, b) 3,6
c) 2,6
d) 4,6 - ✔✔-C) 2,6
above the line vs below the line deductions - ✔✔-The line, in a sense, is your adjusted gross income
(AGI), on which your taxes are largely calculated. Above-the-line deductions are taken before you arrive
at your final AGI; they appear either as subtractions from income items or as explicit deductions on your
1040 and help you actually arrive at your AGI. Below-the-line deductions are taken after you have
determined your AGI and can reduce your taxable income further.
According to a typical suicide clause, if an insured commits suicide within the first two years after a life
insurance policy is issued, which of the following will result
A) No death benefit paid
B) Full death benefit paid
C) Insurance company will pay only the cumulative premiums plus interest earned
D) The insurance company will pay only the cumulative premiums minus interest earned - ✔✔-C
According to the concept of adverse selection, individuals who are ____ likely to need insurance benefits
are the ones ____ likely to purchase coverage
A) least, most
B) most, least
C) least, least
D) most, most - ✔✔-D
According to the principal of ____ an insured will only be reimbursed for the amount of his or her actual
loss, and cannot make a profit from the loss
A) adhesion
B) waiver and estoppel
C) Indemnity
D) Rescission - ✔✔-C
About This Resource:
This CFP Practice Questions Pack is built for aspiring Certified Financial Planners® preparing for the
official exam. Covering all eight key content domains, this resource includes exam-style questions,
detailed answer rationales, and up-to-date information aligned with the CFP Board’s current learning
objectives. Ideal for self-assessment, review, or full exam prep.
A CFP practitioner is required to have ____continuing education hours per reporting period in order to
renew their certification
a) 20
b) 25
c) 30
d) 40 - ✔✔-C) 30
A Change in quantity supplied is identified bu which of the following?
A) Shifting the demand curve
B) Shifting the supply Curve
C) Movement along the supply curve
D) Movement along the demand curve - ✔✔-C- This is the willingness to offer the same product at
different prices.
A provision in a life insurance policy that prevents an insurer from revoking coverage because of alleged
misstatements by an insured after a specified period usually two years, is referred to as
A) Indemnity clause
B) Misstatement of age clause
C) Statute of frauds clause
D) Incontestable clause - ✔✔-D
A recession is a decline in real GDP for ______ or more consecutive quarters, A depression is a decline in
real GDP for ____ or more consecutive quarters
a) 2,4
, b) 3,6
c) 2,6
d) 4,6 - ✔✔-C) 2,6
above the line vs below the line deductions - ✔✔-The line, in a sense, is your adjusted gross income
(AGI), on which your taxes are largely calculated. Above-the-line deductions are taken before you arrive
at your final AGI; they appear either as subtractions from income items or as explicit deductions on your
1040 and help you actually arrive at your AGI. Below-the-line deductions are taken after you have
determined your AGI and can reduce your taxable income further.
According to a typical suicide clause, if an insured commits suicide within the first two years after a life
insurance policy is issued, which of the following will result
A) No death benefit paid
B) Full death benefit paid
C) Insurance company will pay only the cumulative premiums plus interest earned
D) The insurance company will pay only the cumulative premiums minus interest earned - ✔✔-C
According to the concept of adverse selection, individuals who are ____ likely to need insurance benefits
are the ones ____ likely to purchase coverage
A) least, most
B) most, least
C) least, least
D) most, most - ✔✔-D
According to the principal of ____ an insured will only be reimbursed for the amount of his or her actual
loss, and cannot make a profit from the loss
A) adhesion
B) waiver and estoppel
C) Indemnity
D) Rescission - ✔✔-C
