FPQP ACTUAL EXAM PAPER 2026 QUESTIONS
WITH ANSWERS GRADED A+
◉ fundamental areas of financial planning. Answer: cash management
and use of debt
management of personal risk and insurance
investments
retirement planning
tax implications of financial planning
estate planning
◉ FPQP standards of professional conduct. Answer: integrity
objectivity
competency
confidentiality
professionalism
◉ Fiduciary Standard 5 responsibilities. Answer: 1. to put client's
interests first
2. to act with upmost good faith
.3. to provide full & adequate disclosure of all material facts
,4. not to mislead clients
5. to expose all conflicts of interest
◉ 3 basic financial statements. Answer: statement of financial planning
cash flow statement
budget (pro forma)
◉ statement of financial position. Answer: STATIC - considers assets
and liabilities at a certain point in time and can determine net worth
◉ Cash flow statement. Answer: records cash inflows and outflows over
a period of time
◉ net worth. Answer: assets minus liabilities
◉ cash/cash equivalents. Answer: readily converted to cash without
losing principal
ex. checking/savings, CDs, money market funds, life insurnance cash
values
◉ investment asset examples. Answer: stocks, bonds, mutual funds, etfs,
Real estate, precious metals
,◉ Use asset examples. Answer: residence, automobiles, boats, etc.
◉ Areas to Evalutate. Answer: emergency fund
level of debt
level of savings
diversification of assets
retirement prep
tax issues
◉ PITI. Answer: principal, interest, taxes, insurance
◉ Front end debt ratio. Answer: 28% or less
◉ back end debt ratio. Answer: 36% or less
◉ non-mortgage debt ratio. Answer: 20% or less
◉ 5 Cs of credit. Answer: character
capacity
capital
collateral
, conditions
◉ Fair and Accurate Credit Transactions Act. Answer: gives consumers
the right to request a free copy of their credit report every year.
◉ Types of credit. Answer: Revolving and Installment
◉ lien. Answer: legal right to obtain property if borrower defaults on
loan
◉ Ammortization. Answer: process of paying off debt by making
periodic payments
◉ Direct Unsubsidized Student Loans. Answer: not needs based, for
under grad and prof students, fixed at 6.6%
◉ Direct Subsidized Student Loans. Answer: need based, only for
undergrad
◉ parent plus student loans. Answer: not needs based, unlimited amount,
fixed at 7%
◉ Primary advantage of owning home over renting. Answer: tax break
and potential appreciation
WITH ANSWERS GRADED A+
◉ fundamental areas of financial planning. Answer: cash management
and use of debt
management of personal risk and insurance
investments
retirement planning
tax implications of financial planning
estate planning
◉ FPQP standards of professional conduct. Answer: integrity
objectivity
competency
confidentiality
professionalism
◉ Fiduciary Standard 5 responsibilities. Answer: 1. to put client's
interests first
2. to act with upmost good faith
.3. to provide full & adequate disclosure of all material facts
,4. not to mislead clients
5. to expose all conflicts of interest
◉ 3 basic financial statements. Answer: statement of financial planning
cash flow statement
budget (pro forma)
◉ statement of financial position. Answer: STATIC - considers assets
and liabilities at a certain point in time and can determine net worth
◉ Cash flow statement. Answer: records cash inflows and outflows over
a period of time
◉ net worth. Answer: assets minus liabilities
◉ cash/cash equivalents. Answer: readily converted to cash without
losing principal
ex. checking/savings, CDs, money market funds, life insurnance cash
values
◉ investment asset examples. Answer: stocks, bonds, mutual funds, etfs,
Real estate, precious metals
,◉ Use asset examples. Answer: residence, automobiles, boats, etc.
◉ Areas to Evalutate. Answer: emergency fund
level of debt
level of savings
diversification of assets
retirement prep
tax issues
◉ PITI. Answer: principal, interest, taxes, insurance
◉ Front end debt ratio. Answer: 28% or less
◉ back end debt ratio. Answer: 36% or less
◉ non-mortgage debt ratio. Answer: 20% or less
◉ 5 Cs of credit. Answer: character
capacity
capital
collateral
, conditions
◉ Fair and Accurate Credit Transactions Act. Answer: gives consumers
the right to request a free copy of their credit report every year.
◉ Types of credit. Answer: Revolving and Installment
◉ lien. Answer: legal right to obtain property if borrower defaults on
loan
◉ Ammortization. Answer: process of paying off debt by making
periodic payments
◉ Direct Unsubsidized Student Loans. Answer: not needs based, for
under grad and prof students, fixed at 6.6%
◉ Direct Subsidized Student Loans. Answer: need based, only for
undergrad
◉ parent plus student loans. Answer: not needs based, unlimited amount,
fixed at 7%
◉ Primary advantage of owning home over renting. Answer: tax break
and potential appreciation
