1
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Practice Exam FP511 Questions and
Answers (100% Correct Answers) Already
Graded A+
Which of the following activities would be appropriate if you were
establishing and defining the client-planner relationship or
gathering information necessary to fulfill the engagement?
Collecting personal financial information
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Inquiring about the number of dependents
Inquiring about the age or dates of birth of dependents
Determining which stocks to purchase for the client's investment
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portfolio
A)
I and II
B)
I, II, III, and IV
C)
II and III
D)
I, II, and III —ANS: The correct answer is I, II, and III. Establishing
and defining the client-planner relationship does not include
determining which stocks or investments to purchase. This occurs
in the fourth phase of the financial planning process, developing
the recommendations.
LO 1.1.1
Which of the following CFP® certificants would likely be
considered to be engaged in financial planning or the material
elements of financial planning?
, 2
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Lance, who reviews a life insurance sales brochure with his client,
Arthur, and completes a variable life insurance application
Nadia, who conducts comprehensive data gathering regarding
Jason's investments, life insurance, retirement plans, wills, and trusts
and makes recommendations for him
A)
Neither I nor II
B)
II only
C)
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Both I and II
D)
I only —ANS: The correct answer is II only. Because Nadia's
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services involve several of the financial planning subject areas
and she is involved in the elements of financial planning, she is
likely providing financial planning. Lance's service to Arthur is
limited, and the engagement would likely not be considered
financial planning.
LO 6.1.1
According to CFP Board Code of Ethics, Connor, a CFP®
professional, is responsible for which of the following?
Acting in the client's best interests
Avoiding or disclosing and managing conflicts of interest
Acting with honesty, integrity, competence, and diligence
Maintaining the confidentiality and protect the privacy of client
information
A)
II and IV
B)
I, II, III, and IV
, 3
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C)
I, III, and IV
D)
I and II —ANS: The correct answer is I, II, III, and IV. A CFP®
professional must
Act with honesty, integrity, competence, and diligence.
Act in the client's best interests.
Exercise due care.
Avoid or disclose and manage conflicts of interest.
Maintain the confidentiality and protect the privacy of client
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information.
Act in a manner that reflects positively on the financial planning
profession and CFP® certification.
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LO 1.2.1
Amanda, a CFP® professional, is enjoying an afternoon at her
son's school playground when she is approached by Tracy, a
fellow parent and teacher at a local elementary school. Their
conversation covers specifics about Tracy's personal and financial
situation, with emphasis on a recommended investment strategy
for her 403(b) account. Amanda is aware that she is providing
Financial Advice to Tracy. Identify the correct application of rules
from the Code and Standards based on Amanda and Tracy's
interaction.
A)
Although only Financial Advice has been determined, Amanda
must uphold her Fiduciary Duty and must follow the Code of
Ethics.
B)
Tracy is technically not a client and the conversation is occurring
outside Amanda's office, therefore, neither the Fiduciary
requirements nor Code of Ethics applies.
, 4
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C)
While not necessary, due to the lack Financial Planning, Amanda
should consider applying important principles from th —ANS: The
correct answer is although only Financial Advice has been
determined, Amanda must uphold her Fiduciary Duty and must
follow the Code of Ethics. As a CFP® professional, Amanda is
obligated to uphold the Code of Ethics. In addition, since
Financial Advice is occurring, Amanda must act as a Fiduciary, in
the best interest of Tracy. The introduction of the Code and
Standards specifically states "The Code of Ethics applies at all
times, and sets forth principles that guide the behavior of CFP®
professionals, with elaboration provided in the Standards."
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LO 1.2.2
Bill and Sophia have recently retired and want to travel to Europe
and then volunteer for local mission work. They would also like to
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meet with Humphrey, their financial planner, to discuss charitable
contributions they would like to make to these local missions.
Humphrey should determine Bill and Sophia's life cycle phase to
be
A)
the asset accumulation phase.
B)
the distribution phase.
C)
the conservation phase.
D)
the protection phase. —ANS: The correct answer is the distribution
phase. The distribution/gifting phase begins subtly when a couple
realizes that they can afford to spend on things they never
believed possible. The asset accumulation and
conservation/protection phases make this phase possible. For
many people, there is a period when they are being influenced
For Expert help and assignment solutions, +254707240657
Practice Exam FP511 Questions and
Answers (100% Correct Answers) Already
Graded A+
Which of the following activities would be appropriate if you were
establishing and defining the client-planner relationship or
gathering information necessary to fulfill the engagement?
Collecting personal financial information
© 2025 Assignment Expert
Inquiring about the number of dependents
Inquiring about the age or dates of birth of dependents
Determining which stocks to purchase for the client's investment
Guru01 - Stuvia
portfolio
A)
I and II
B)
I, II, III, and IV
C)
II and III
D)
I, II, and III —ANS: The correct answer is I, II, and III. Establishing
and defining the client-planner relationship does not include
determining which stocks or investments to purchase. This occurs
in the fourth phase of the financial planning process, developing
the recommendations.
LO 1.1.1
Which of the following CFP® certificants would likely be
considered to be engaged in financial planning or the material
elements of financial planning?
, 2
For Expert help and assignment solutions, +254707240657
Lance, who reviews a life insurance sales brochure with his client,
Arthur, and completes a variable life insurance application
Nadia, who conducts comprehensive data gathering regarding
Jason's investments, life insurance, retirement plans, wills, and trusts
and makes recommendations for him
A)
Neither I nor II
B)
II only
C)
© 2025 Assignment Expert
Both I and II
D)
I only —ANS: The correct answer is II only. Because Nadia's
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services involve several of the financial planning subject areas
and she is involved in the elements of financial planning, she is
likely providing financial planning. Lance's service to Arthur is
limited, and the engagement would likely not be considered
financial planning.
LO 6.1.1
According to CFP Board Code of Ethics, Connor, a CFP®
professional, is responsible for which of the following?
Acting in the client's best interests
Avoiding or disclosing and managing conflicts of interest
Acting with honesty, integrity, competence, and diligence
Maintaining the confidentiality and protect the privacy of client
information
A)
II and IV
B)
I, II, III, and IV
, 3
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C)
I, III, and IV
D)
I and II —ANS: The correct answer is I, II, III, and IV. A CFP®
professional must
Act with honesty, integrity, competence, and diligence.
Act in the client's best interests.
Exercise due care.
Avoid or disclose and manage conflicts of interest.
Maintain the confidentiality and protect the privacy of client
© 2025 Assignment Expert
information.
Act in a manner that reflects positively on the financial planning
profession and CFP® certification.
Guru01 - Stuvia
LO 1.2.1
Amanda, a CFP® professional, is enjoying an afternoon at her
son's school playground when she is approached by Tracy, a
fellow parent and teacher at a local elementary school. Their
conversation covers specifics about Tracy's personal and financial
situation, with emphasis on a recommended investment strategy
for her 403(b) account. Amanda is aware that she is providing
Financial Advice to Tracy. Identify the correct application of rules
from the Code and Standards based on Amanda and Tracy's
interaction.
A)
Although only Financial Advice has been determined, Amanda
must uphold her Fiduciary Duty and must follow the Code of
Ethics.
B)
Tracy is technically not a client and the conversation is occurring
outside Amanda's office, therefore, neither the Fiduciary
requirements nor Code of Ethics applies.
, 4
For Expert help and assignment solutions, +254707240657
C)
While not necessary, due to the lack Financial Planning, Amanda
should consider applying important principles from th —ANS: The
correct answer is although only Financial Advice has been
determined, Amanda must uphold her Fiduciary Duty and must
follow the Code of Ethics. As a CFP® professional, Amanda is
obligated to uphold the Code of Ethics. In addition, since
Financial Advice is occurring, Amanda must act as a Fiduciary, in
the best interest of Tracy. The introduction of the Code and
Standards specifically states "The Code of Ethics applies at all
times, and sets forth principles that guide the behavior of CFP®
professionals, with elaboration provided in the Standards."
© 2025 Assignment Expert
LO 1.2.2
Bill and Sophia have recently retired and want to travel to Europe
and then volunteer for local mission work. They would also like to
Guru01 - Stuvia
meet with Humphrey, their financial planner, to discuss charitable
contributions they would like to make to these local missions.
Humphrey should determine Bill and Sophia's life cycle phase to
be
A)
the asset accumulation phase.
B)
the distribution phase.
C)
the conservation phase.
D)
the protection phase. —ANS: The correct answer is the distribution
phase. The distribution/gifting phase begins subtly when a couple
realizes that they can afford to spend on things they never
believed possible. The asset accumulation and
conservation/protection phases make this phase possible. For
many people, there is a period when they are being influenced
