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FP1 FULL PRACTICE EXAM QUESTIONS AND ASNWERS (100% PASS)
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FP1 FULL PRACTICE EXAM QUESTIONS AND ASNWERS (100% PASS)
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©PREP4EXAMS@2024/2025 [ REAL-EXAM-DUMPS] Monday, August 5, 2024 1: 54 PMWEST VIRGINIA UNIVERSIRTY-WV26506
FP1 FULL PRACTICE EXAM QUESTIONS
AND ASNWERS (100% PASS)
Which statement regarding the traits or values of financial advisors is correct?
A. Professionalism is displayed by being competent and knowledgeable.
B. Diligence is displayed by being honest with clients.
C. Objectivity requires respecting clients' privacy.
D. Confidentiality requires the advisor to make impartial recommendations. - ✔️✔️A.
Professionalism is displayed by being competent and knowledgeable.
Professionalism is displayed by being competent and knowledgeable by keeping up to
date regarding key aspects of the financial services industry.
By and large, what statement below is true in regards to the current landscape in
Canada for financial advisors?
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,©PREP4EXAMS@2024/2025 [ REAL-EXAM-DUMPS] Monday, August 5, 2024 1: 54 PM
WEST VIRGINIA UNIVERSIRTY-WV26506
A. There has been a dramatic shift to fee based advice as it's perceived as unbiased.
B. The role has shifted to a client driven model where building a strong client
relationship is key.
C. The business is now product driven where it's all about selling higher commissioned
products.
D. The industry is focusing on reducing costs and finding the most inexpensive
investments for clients. - ✔️✔️B. The role has shifted to a client driven model where
building a strong client relationship is key.
The role of the Advisor in the financial services industry has changed in recent years
from one that is product driven to one that is client driven. Reference: Module 1, Section
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Which statements about the evolution of the role of financial advisors is/are correct?
[I] The financial services industry has moved towards an integrated market and so have
advisors.
[II] Advisors have fewer products and services to offer to clients.
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[III] Advisors require a greater level of knowledge to recommend sophisticated
alternatives to clients.
A. I only.
B. I and III only.
C. II and III only.
D. I and II only. - ✔️✔️B. I and III only.
Advisors have to work within a highly integrated financial services market and must
possess a much higher level of knowledge than before to satisfy increasingly
sophisticated clients.
Select the first step in the financial planning process.
A. Analyzing a client's data and information.
B. Recommending strategies to meet goals.
C. Establishing a relationship with the client.
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D. Collecting a client's data and information. - ✔️✔️C. Establishing a relationship with the
client.
The first step in the financial planning process is for an advisor to establish a
relationship with the client; everything else follows.
Select the item that would provide you with quantitative data about your new client.
A. Profit sharing plan statement.
B. Risk tolerance assessment.
C. Goal setting questionnaire.
D. Fees and services agreement. - ✔️✔️A. Profit sharing plan statement.
Only the profit-sharing statement would provide you with quantitative data, i.e. numeric
or other specific data that can be quantified. The other options would provide qualitative
data. Reference: Module 1, Section 2.
Your client's goal is to improve her cash flow. Select the strategy that will be most
effective in helping her to reach her goal.
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