B1: Fundamentals of Financial Planning |
C1: Introduction to Financial Planning
UPDATED ACTUAL Questions and
CORRECT Answers
T/F: Peronsal Financial Planning is the Comprehensive Process of formulating, implementing,
and monitoring financial decisions that guide the client to achieve financial goals. - CORRECT
ANSWER - True
T/F: Long term planning includes emergency funding, financial security planning, education
planning, lump-sum purchase planning, and legacy planning. - CORRECT ANSWER -
False
Emergency Funding is a short-term goal.
T/F: At the introductory meeting, the financial planner will collect data, come to understand the
client's values and goals, establish the scope of the engagement, and discuss fees. - CORRECT
ANSWER - True
T/F: Examples of internal data include current interest rates, housing market status, job market
status, local cost of living, and expected inflation rates. - CORRECT ANSWER - False
All are examples of external data.
You are a relatively new financial planner. You have been working for an investment firm in the
United States and have decided that you would like to add more credibility to your practice.
Which of the following qualifications would provide you with the most credibility since it is the
oldest and best known?
A. CFP®
B. ChFC
, C. EFP
D. ICFP - CORRECT ANSWER - The correct answer is A.
The CFP® certification is the oldest and best know certification.
Which of the following items of information is least likely to be obtained from your client during
the data gathering portion of the client meeting?
A. General attitude towards spending
B. The income tax bracket of your client's adult children
C. Employer sponsored employee benefits
D. Repayment term of outstanding debt - CORRECT ANSWER - The correct answer is B.
Knowing the income tax bracket of your client's children may be helpful in some situations (for
example, when you are determining the most appropriate gift to give a particular person)
however, it is generally not essential to the financial planning process. The other three items are
more relevant.
Your client, Jed, engaged you to help him arrange his financial situation. During the course of
your meetings you sold Jed a $1,000,000 life insurance policy. Which part of the financial
planning process were you engaged in?
A. Analyzing and evaluating the client's financial status
B. Monitoring the plan
C. Developing and presenting the financial plan recommendations
D. Implementing the financial plan recommendations - CORRECT ANSWER - The
correct answer is D.
By actually selling the insurance product you are now implementing the plan recommendations.
C1: Introduction to Financial Planning
UPDATED ACTUAL Questions and
CORRECT Answers
T/F: Peronsal Financial Planning is the Comprehensive Process of formulating, implementing,
and monitoring financial decisions that guide the client to achieve financial goals. - CORRECT
ANSWER - True
T/F: Long term planning includes emergency funding, financial security planning, education
planning, lump-sum purchase planning, and legacy planning. - CORRECT ANSWER -
False
Emergency Funding is a short-term goal.
T/F: At the introductory meeting, the financial planner will collect data, come to understand the
client's values and goals, establish the scope of the engagement, and discuss fees. - CORRECT
ANSWER - True
T/F: Examples of internal data include current interest rates, housing market status, job market
status, local cost of living, and expected inflation rates. - CORRECT ANSWER - False
All are examples of external data.
You are a relatively new financial planner. You have been working for an investment firm in the
United States and have decided that you would like to add more credibility to your practice.
Which of the following qualifications would provide you with the most credibility since it is the
oldest and best known?
A. CFP®
B. ChFC
, C. EFP
D. ICFP - CORRECT ANSWER - The correct answer is A.
The CFP® certification is the oldest and best know certification.
Which of the following items of information is least likely to be obtained from your client during
the data gathering portion of the client meeting?
A. General attitude towards spending
B. The income tax bracket of your client's adult children
C. Employer sponsored employee benefits
D. Repayment term of outstanding debt - CORRECT ANSWER - The correct answer is B.
Knowing the income tax bracket of your client's children may be helpful in some situations (for
example, when you are determining the most appropriate gift to give a particular person)
however, it is generally not essential to the financial planning process. The other three items are
more relevant.
Your client, Jed, engaged you to help him arrange his financial situation. During the course of
your meetings you sold Jed a $1,000,000 life insurance policy. Which part of the financial
planning process were you engaged in?
A. Analyzing and evaluating the client's financial status
B. Monitoring the plan
C. Developing and presenting the financial plan recommendations
D. Implementing the financial plan recommendations - CORRECT ANSWER - The
correct answer is D.
By actually selling the insurance product you are now implementing the plan recommendations.
