Fi 830 Exam Review Questions And Answers.

FI 830 EXAM REVIEW QUESTIONS AND
ANSWERS




Financial43Planning43Process:43Step43143-43answer--
Understanding43the43Client's43Personal43and43Financial43Circumstances

What43type43of43information43do43you43gather43in43Step43143of43the43Financial43Planning
43Process?43-43answer--Obtain43qualitative43and43quantitative43information:
-
43Qualitative:43Tolerance43for43risk,43Longevity,43What43things43are43you43planning43tow
ards
-43Quantitative:43Age,43dependence,43income,43liabilities,43taxes

Four43situation43factors43that43characterize43clients43and43influence43their43money43scrip
ts:43-43answer---43Temperament43and43personality
-43Attitudes,43beliefs,43and43behaviors
-43Financial43knowledge43and43experience
-43Socioeconomic43descriptors

Financial43Planning43Process:43Step43243-43answer--Identifying43and43selecting43goals

The43goals43you43want43to43identify43in43Step43243of43the43Financial43Planning43Process:
43-43answer---43Where43and43when43you43want43to43retire
-43How43much43you43want43to43retire43with
-43Education43for43children43or43grandchildren
-43Financial43responsibility43for43others
-43Special43needs43children
-43Risk43tolerance43(money43feelings)

Financial43Planning43Process:43Step43343-43answer--
Analyze43the43current43course43of43action43and43potential43alternatives

Financial43Planning43Process:43Step43443-43answer--
Developing43the43Financial43Planning43Recommendation(s)

, -
43Select43one43or43more43recommendations43designed43to43maximize43the43potential43fo
r43meeting43client's43goals

Financial43Planning43Process:43Step43543-43answer--
Presenting43the43Financial43Planning43Recommendations

-
43Present43to43the43client43selected43recommendations43and43the43information43that43wa
s43required43to43be43considered43in43developing43the43recommendations

Financial43Planning43Process:43Step43643-43answer--
Implementing43the43Financial43Planning43Recommendations

-43Address43implementation43responsibilities
-
43If43you43have43implementation43responsibilities,43identify,43analyze43and43select43actio
ns,43products43and43services43designed43the43implement43the43recommendations
-
43If43you43have43implementation43responsibilities,43recommend43one43or43more43actions,
43products,43and43services43for43recommendations


Financial43Planning43Process:43Step43743-43answer--
Monitoring43Progress43and43Updating

-43Establish43monitoring43and43updating43responsibilities
-43Monitor43the43client's43progress
-43Obtain43current43qualitative43and43quantitative43information
-43Update43goals,43recommendations,43and43implementation43decisions

Two43factors43influence43financial43goals:43-43answer--
1.43Time43frame43in43which43you43want43to43achieve43your43goals
2.43Financial43need43that43drives43your43goal

Cash43Flow43(Income)43Statement43-43answer--
The43actual43inflow43and43outflow43for43a43given43time43period

Cash43flow43statement43provides43the43foundation43for43preparing43and43implementing43
a43spending,43saving43and43investment43plan

Three43step43process

Cash43Surplus43or43Deficit43Calculation43-43answer--
Total43cash43received43during43the43time43period43-
43Cash43outflows43during43the43time43period