CHOOSING A FINANCIAL ADVISOR
PRACTICE EXAM QUESTIONS WITH
CORRECT ANSWERS
Certified Financial Planner (CFP) - ANSWER-Professional who has attained a high
degree of technical competency in financial planning and has passed a series of
professional examinations.
regulatory agency - ANSWER-a governmental agency that regulates businesses in the
public interest
price gouging - ANSWER-Pricing products unreasonably high when the need is great or
when consumers do not have other choices.
monopoly - ANSWER-Complete control of a product or business by one person or
group
Securities and Exchange Commission (SEC) - ANSWER-The agency of the U.S.
government that oversees U.S. financial markets and accounting standard-setting
bodies.
Federal Deposit Insurance Corporation (FDIC) - ANSWER-an agency created in 1933
to insure individuals' bank accounts, protecting people against losses due to bank
failures
National Credit Union Administration (NCUA) - ANSWER-an agency that regulates and
charters credit unions and insures their deposits through its National Credit Union
Insurance Fund
Certified Public Accountant (CPA) - ANSWER-an individual who has been state certified
to provide accounting services ranging from the preparation of financial records and the
filing of tax returns to complex audits of corporate financial records
brokerage house - ANSWER-A firm that offers various investing services, such as
securities trading, research analysis, and advice.
broker - ANSWER-person who acts as a go-between for buyers and sellers
PRACTICE EXAM QUESTIONS WITH
CORRECT ANSWERS
Certified Financial Planner (CFP) - ANSWER-Professional who has attained a high
degree of technical competency in financial planning and has passed a series of
professional examinations.
regulatory agency - ANSWER-a governmental agency that regulates businesses in the
public interest
price gouging - ANSWER-Pricing products unreasonably high when the need is great or
when consumers do not have other choices.
monopoly - ANSWER-Complete control of a product or business by one person or
group
Securities and Exchange Commission (SEC) - ANSWER-The agency of the U.S.
government that oversees U.S. financial markets and accounting standard-setting
bodies.
Federal Deposit Insurance Corporation (FDIC) - ANSWER-an agency created in 1933
to insure individuals' bank accounts, protecting people against losses due to bank
failures
National Credit Union Administration (NCUA) - ANSWER-an agency that regulates and
charters credit unions and insures their deposits through its National Credit Union
Insurance Fund
Certified Public Accountant (CPA) - ANSWER-an individual who has been state certified
to provide accounting services ranging from the preparation of financial records and the
filing of tax returns to complex audits of corporate financial records
brokerage house - ANSWER-A firm that offers various investing services, such as
securities trading, research analysis, and advice.
broker - ANSWER-person who acts as a go-between for buyers and sellers
