In his financial planning practice, Frank allows his clients' goals and values to drive his
relationships with them. He sees himself as a consultant. Frank's approach to financial
counseling is known as
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the strategic management approach.
In this approach, the client's goals and values drive the client-planner
relationship and the planner serves as a consultant. In the classical
, economics approach, planners attempt to achieve better financial
outcomes by increasing financial resources or reducing expenditures. The
cognitive-behavioral approach believes a client's attitudes, beliefs, and
values influence their behavior and tries to replace negative beliefs with
positive attitudes that should result in better financial results.
Select the group(s) to which the CFP Board Fitness Standards apply.
1 Candidates for the CFP® exam
2 Professionals Eligible for Reinstatement
3 Respondents in a CFP Board investigation
4 A CFP® practitioner acting in a supervisory capacity
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1,2
The Fitness Standards apply to candidates for the CFP® exam and
Professionals Eligible for Reinstatement (PER). PER include both individuals
who are not currently certified but have been certified by CFP Board in the
past and individuals are eligible to reinstate their certification without being
required to pass the current CFP® Certification Examination
Which of the following statements regarding The Securities Act of 1933 are
CORRECT?
1 The Act provides applicable procedures for issuing an initial public offering (IPO) of
securities.
2 The Act identifies securities that are exempt from the registration requirements.
3 The Securities and Exchange Commission (SEC) was established by this act.
4 The Act requires the registration of new issues of securities.
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, I, II, and IV.
The SEC was established as the primary regulatory body overseeing the
sale and purchase of securities by investors under The Securities Exchange
Act of 1934.
Marcel purchased a zero-coupon bond 12 years ago for $300. The bond, with a face
value of $1,000, matured today. What is the average annual compound rate of return
(calculated semiannually) that Marcel realized on his investment?
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10.29%.
Marcel averaged 10.29% on his investment, calculated as follows:
END Mode
2, DOWNSHIFT, P/YR
DOWNSHIFT, C ALL
300, +/-, PV
1000, FV
12, DOWNSHIFT, N = 24
0, PMT
Solve for I/YR = 10.29 or 10.29%
Kristoff has been advised by his financial planner that he needs to increase his
savings. Which of the following are ways Kristoff can save for this purpose?
1 Cancel his video game subscription
2 Choose a more economical cable channel plan
3 Use his overdraft feature on his debit cards
4 Decrease the deductible on his homeowners policy
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, 1-2
Using an overdraft feature on debit cards may tempt Kristoff to spend
money he does not have available in his account. Decreasing insurance
deductibles increases premiums, which is not a savings strategy.
(Martin Case Study)
During conversations with Sherri, you see she considers her investment skills to be
much greater than they actually are. She tends to take credit for any investment
decisions that have positive returns for her family, but blames the economy when their
portfolio does poorly. Sherri's behavior is an example of
Give this one a try later!
overconfidence.
Sherri's behavior is an example of overconfidence. Confirmation bias is
paying attention to information that supports a preconceived opinion and
poorly made decision, while disregarding accurate, unsupportive
information. Anchoring is making irrational decisions based on information
that should have no influence on the decision at hand. Herding is present
when individuals tend to follow the actions of a larger group of people
when making financial decisions, whether those actions are rational or not.
Which one of the following should be considered a liquid asset for emergency fund
purposes?
Give this one a try later!
relationships with them. He sees himself as a consultant. Frank's approach to financial
counseling is known as
Give this one a try later!
the strategic management approach.
In this approach, the client's goals and values drive the client-planner
relationship and the planner serves as a consultant. In the classical
, economics approach, planners attempt to achieve better financial
outcomes by increasing financial resources or reducing expenditures. The
cognitive-behavioral approach believes a client's attitudes, beliefs, and
values influence their behavior and tries to replace negative beliefs with
positive attitudes that should result in better financial results.
Select the group(s) to which the CFP Board Fitness Standards apply.
1 Candidates for the CFP® exam
2 Professionals Eligible for Reinstatement
3 Respondents in a CFP Board investigation
4 A CFP® practitioner acting in a supervisory capacity
Give this one a try later!
1,2
The Fitness Standards apply to candidates for the CFP® exam and
Professionals Eligible for Reinstatement (PER). PER include both individuals
who are not currently certified but have been certified by CFP Board in the
past and individuals are eligible to reinstate their certification without being
required to pass the current CFP® Certification Examination
Which of the following statements regarding The Securities Act of 1933 are
CORRECT?
1 The Act provides applicable procedures for issuing an initial public offering (IPO) of
securities.
2 The Act identifies securities that are exempt from the registration requirements.
3 The Securities and Exchange Commission (SEC) was established by this act.
4 The Act requires the registration of new issues of securities.
Give this one a try later!
, I, II, and IV.
The SEC was established as the primary regulatory body overseeing the
sale and purchase of securities by investors under The Securities Exchange
Act of 1934.
Marcel purchased a zero-coupon bond 12 years ago for $300. The bond, with a face
value of $1,000, matured today. What is the average annual compound rate of return
(calculated semiannually) that Marcel realized on his investment?
Give this one a try later!
10.29%.
Marcel averaged 10.29% on his investment, calculated as follows:
END Mode
2, DOWNSHIFT, P/YR
DOWNSHIFT, C ALL
300, +/-, PV
1000, FV
12, DOWNSHIFT, N = 24
0, PMT
Solve for I/YR = 10.29 or 10.29%
Kristoff has been advised by his financial planner that he needs to increase his
savings. Which of the following are ways Kristoff can save for this purpose?
1 Cancel his video game subscription
2 Choose a more economical cable channel plan
3 Use his overdraft feature on his debit cards
4 Decrease the deductible on his homeowners policy
Give this one a try later!
, 1-2
Using an overdraft feature on debit cards may tempt Kristoff to spend
money he does not have available in his account. Decreasing insurance
deductibles increases premiums, which is not a savings strategy.
(Martin Case Study)
During conversations with Sherri, you see she considers her investment skills to be
much greater than they actually are. She tends to take credit for any investment
decisions that have positive returns for her family, but blames the economy when their
portfolio does poorly. Sherri's behavior is an example of
Give this one a try later!
overconfidence.
Sherri's behavior is an example of overconfidence. Confirmation bias is
paying attention to information that supports a preconceived opinion and
poorly made decision, while disregarding accurate, unsupportive
information. Anchoring is making irrational decisions based on information
that should have no influence on the decision at hand. Herding is present
when individuals tend to follow the actions of a larger group of people
when making financial decisions, whether those actions are rational or not.
Which one of the following should be considered a liquid asset for emergency fund
purposes?
Give this one a try later!
