CRPC PRACTICE EXAM 2024 ACTUAL
EXAM 150 QUESTIONS WITH DETAILED
VERIFIED SOLUTIONS /A+ GRADE
ASSURED
Which one of the following is a correct
statement about the amount of Social Security
retirement benefits available when a fully insured
worker's retirement benefit begins at full
retirement age (FRA)?
A)
If the spouse is at or above his or her full
retirement age when commencing Social
Security benefits, the spouse will receive at
least 50% of the worker's PIA. B)
The worker will receive 80% of his or her
primary insurance amount (PIA).
C)
A 63-year-old spouse of the retired worker will
receive at least 50% of the worker's PIA.
D)
If the spouse of the worker has attained FRA
and is entitled to benefits on their earning
record, the benefit is the lesser of 100% of the
spouse's own PIA or 50% of the worker's PIA.
- ...ANSWER...A
Which one of the following is correct regarding
most types of tax exempt interest and the
taxation of Social Security benefits?
,A)
None of the tax-exempt interest is included in
the computation of the taxation of Social
Security benefits. B)
All of the tax-exempt interest is included in the
computation of the taxation of Social Security
benefits. C)
50% of the tax-exempt interest is included in
the computation of the taxation of Social
Security benefits. D)
85% of the tax-exempt interest is included in
the computation of the taxation of Social
Security benefits.
- ...ANSWER...B
Susan has reached full retirement age (FRA).
She is trying to decide between starting Social
Security benefits of $1,000 per month now, or
delaying receipt for three years and using her
savings to provide current income. By delaying
three years her benefit would increase to
$1,240 per month. Ignoring the time value of
money and cost-of-living adjustments, use the
break-even calculation to determine how much
longer Susan will need to live in order for
delaying to "pay off." A)
She should delay only if she expects to live
beyond the next 15½ years or so.
B)
She should delay beyond FRA regardless of
her life expectancy in order to maximize her
lifetime benefit. C)
She should begin at FRA if she expects to live
beyond the next three years.
,D)
She should begin her benefits at FRA
regardless of her life expectancy in order to
maximize her lifetime benefit. - ...ANSWER...A
Sam, age 62, begins receiving his Social
Security income. His PIA is $1,500 per month.
Because he has filed at age 62, his payment
will be reduced by 25% to
$1,125. His wife Linda, age 67, would like
to begin spousal benefits. Her monthly
income would be A)
$562.50.
B)
$1,500.0
0. C)
$1,125.0
0. D)
$750.00. - ...ANSWER...D
Unsystematic
risk A)
can be effectively
eliminated. B)
increases during periods of volatile interest
rates. C)
is reduced when markets fluctuate
less. D)
is increased through diversification. -
...ANSWER...A
Sources of risk include which of the following?
I.fluctuating exchange rates
II. a firm's financing decisions
, III. higher interest rates
IV. a loss of purchasing
power A)
II and
III B)
II and
IV C)
I and II
D)
I, II, III, and IV - ...ANSWER...D
Investors who want to bear the least amount
of risk from equity investments should
acquire stocks with beta coefficients
A)
greater than
1.5. B)
less than
1.0. C)
greater than
1.0. D)
less than 0.5. - ...ANSWER...D
If a security has an average return of 14.2%
and a standard deviation of 8.4, what can be
said about the security?
A)
The security's returns can be expected to never
be negative.
B)
The security's returns can be expected to be
between 8.4% and 14.2% approximately 95% of
the time.
EXAM 150 QUESTIONS WITH DETAILED
VERIFIED SOLUTIONS /A+ GRADE
ASSURED
Which one of the following is a correct
statement about the amount of Social Security
retirement benefits available when a fully insured
worker's retirement benefit begins at full
retirement age (FRA)?
A)
If the spouse is at or above his or her full
retirement age when commencing Social
Security benefits, the spouse will receive at
least 50% of the worker's PIA. B)
The worker will receive 80% of his or her
primary insurance amount (PIA).
C)
A 63-year-old spouse of the retired worker will
receive at least 50% of the worker's PIA.
D)
If the spouse of the worker has attained FRA
and is entitled to benefits on their earning
record, the benefit is the lesser of 100% of the
spouse's own PIA or 50% of the worker's PIA.
- ...ANSWER...A
Which one of the following is correct regarding
most types of tax exempt interest and the
taxation of Social Security benefits?
,A)
None of the tax-exempt interest is included in
the computation of the taxation of Social
Security benefits. B)
All of the tax-exempt interest is included in the
computation of the taxation of Social Security
benefits. C)
50% of the tax-exempt interest is included in
the computation of the taxation of Social
Security benefits. D)
85% of the tax-exempt interest is included in
the computation of the taxation of Social
Security benefits.
- ...ANSWER...B
Susan has reached full retirement age (FRA).
She is trying to decide between starting Social
Security benefits of $1,000 per month now, or
delaying receipt for three years and using her
savings to provide current income. By delaying
three years her benefit would increase to
$1,240 per month. Ignoring the time value of
money and cost-of-living adjustments, use the
break-even calculation to determine how much
longer Susan will need to live in order for
delaying to "pay off." A)
She should delay only if she expects to live
beyond the next 15½ years or so.
B)
She should delay beyond FRA regardless of
her life expectancy in order to maximize her
lifetime benefit. C)
She should begin at FRA if she expects to live
beyond the next three years.
,D)
She should begin her benefits at FRA
regardless of her life expectancy in order to
maximize her lifetime benefit. - ...ANSWER...A
Sam, age 62, begins receiving his Social
Security income. His PIA is $1,500 per month.
Because he has filed at age 62, his payment
will be reduced by 25% to
$1,125. His wife Linda, age 67, would like
to begin spousal benefits. Her monthly
income would be A)
$562.50.
B)
$1,500.0
0. C)
$1,125.0
0. D)
$750.00. - ...ANSWER...D
Unsystematic
risk A)
can be effectively
eliminated. B)
increases during periods of volatile interest
rates. C)
is reduced when markets fluctuate
less. D)
is increased through diversification. -
...ANSWER...A
Sources of risk include which of the following?
I.fluctuating exchange rates
II. a firm's financing decisions
, III. higher interest rates
IV. a loss of purchasing
power A)
II and
III B)
II and
IV C)
I and II
D)
I, II, III, and IV - ...ANSWER...D
Investors who want to bear the least amount
of risk from equity investments should
acquire stocks with beta coefficients
A)
greater than
1.5. B)
less than
1.0. C)
greater than
1.0. D)
less than 0.5. - ...ANSWER...D
If a security has an average return of 14.2%
and a standard deviation of 8.4, what can be
said about the security?
A)
The security's returns can be expected to never
be negative.
B)
The security's returns can be expected to be
between 8.4% and 14.2% approximately 95% of
the time.
