Certified Financial Planner (CFP) Tests Bundle Set

Lisa purchased 500 shares of XYZ stock trading at $40 per share, with an initial margin requirement of 60% and a maintenance margin of 30%. At What price would Lisa receive a margin call? A. $20 B. $22.86 C. $57.14 D. $80.00 CORRECT ANSWER B. $22.86 40*(1-.60)/ 1-.30= 22.86 Lareen purcha...

Stafford Loans are administered by: A) Private Loan Administration B) Federal Family Education Loan Program C) Parent loans to undergraduate students D) Federal assistance loan program CORRECT ANSWER B Perkins loans CORRECT ANSWER Low-interest federal student loans for undergraduate and gradu...

Savings Strategy: How much of your gross income should you save? CORRECT ANSWER 5-8% Securities Act of 1933 CORRECT ANSWER Purchasers of new issues must be provided with a detailed prospectus before transaction. Securities Act of 1934 CORRECT ANSWER Regulates the secondary Market or trading of...

CFP Standards of Conduct Sections (6) CORRECT ANSWER A. Duties owed to clients. B. Fin. Planning and Application of Practice Standards C. Practice Standards for Fin. Planning Process D. Duties owed to firms/subordinates E. Duties owed to CFP Board F. Prohibition on Circumvention Section A of...

Which of the following is an example of a hazard? A. Wagering $100 on the outcome of Saturday's game B. Bringing a new product to market C. Purchasing a new home D. The cause of a loss E. Building a house near a river CORRECT ANSWER E. Building a house near a river Owning a home near a ri...

Code of Ethics CORRECT ANSWER Identifies ethical principles that guide the behavior of CFP®professionals and sets forth six directives that CFP® professionals must adhere to. Standards of Conduct CORRECT ANSWER set forth the duties that a CFP® professional owes to Clients, firms and subordinat...

What are the 7 steps in the Financial Planning Process? CORRECT ANSWER 1) Understanding the client's financial circumstances 2) Identify goals 3) Analyze the client's current course of action and potential alternative course of action 4) Develop financial plan recommendations 5) Present recom...

As a rule of thumb, it is best if consumer debt does not exceed: A. 20% of net income. B. 20% of gross income. C. 3 to 6 months of expenses. D. 36% of gross monthly income. CORRECT ANSWER A. 20% of net income This is a rule of thumb, along with the others that recommend housing debt be limi...

4 Types of Risk- CORRECT ANSWER "POSS: 1. Pure Risk: change of loss or no loss (no chance of gain) 2. Objective Risk: measurable and quantifiable risk based on stats 3. Speculative Risk: chance of profit, loss or no loss. 4. Subjecive Risk: Risk that is based upon perception of individual ...

A CFP® professional has been engaged by a client to help with budgeting and investing for retirement. The client has had difficulty saving money for investments even though he has an adequate income. The CFP® professional began to collect information on income and expenses for the client and then ...

Which of the following is correct regarding certificates of deposit (CDs)? A. CD's are short-term securities that may be bought or sold in the open market at a market-determined price. B. CD's typically invest in high-quality, short-term investments, such as commercial paper, T-Bills, and mone...

The preamble of CFP Board's Code of Ethics and Standards of Conduct describes the value of upholding aspirational standards and incorporating them into everyday financial planning practice. Identify the purpose(s) of the Code and Standards contained in the preamble. To hold all CFP® professiona...

6 Stages of Financial Planning CORRECT ANSWER 1. Establish client planner relationship. 2. Gather data and objectives. 3. Analyze and Evaluate financial status. 4. Develop plan and present recommendations. 5. Implement. 6. Monitor. Disposable Income (DI) CORRECT ANSWER PI - personal taxes ...