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FPQP - MODULE 1 QUESTIONS & ANSWERS VERIFIED 100% CORRECT!!
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FPQP - MODULE 1 QUESTIONS & ANSWERS VERIFIED 100% CORRECT!!
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FPQP - MODULE 1 QUESTIONS & ANSWERSVERIFIED 100% CORRECT!!
Personal Financial Planning
a. is a collaborative process
b. is primarily needed by wealthy individuals
c. does not need monitoring if done correctly
d. involves only insurance, investment, and retirement planning Answer - A
Which one of the following is a correctly written financial goal?
a. to set aside 10% of income for the purpose of replacing the automobile
currently owned
b. to accumulate funds within the next 10 years for college expenses for a son
c. to accumulate $40,000 in five years for a house down payment
d. to invest $5,000 per year for retirement Answer - C
Asset categories that are appropriate for the client are determined in which
one of the following steps in the financial planning process?
a. Understanding the clients personal and financial circumstances
b. Analyzing the clients current course of action and potential alternate course
of action
c. Developing the financial planning recommendations
d. Implementing the financial planning recommendations Answer - C
,Kiara has accumulated $10,000 in a savings account over the last few years and
has earmarked that money as a down payment on a luxury boat. Her central air
conditioner breaks and requires $5,000 in repairs. Kiara is reluctant to spend
the money in her savings account to make the repairs because she wants to use
that money for the boat down payment. Instead, she puts the $5,000 repair
charge on her credit card at an annual interest rate of 23%. This is an example
of which of these behaviors?
a. Confirmation bias
b. Mental accounting
c. Self- control bias
d. Conservation bias Answer - B
When helping clients identify goals, financial planners should practice active
listening skills by engaging in all of these except
a. summarizing what the planner has heard
b. offering suggestions for goals
c. restating the clients goals
d. paraphrasing what the clients have said Answer - B
Which of the following financial goals is written correctly?
a. to accumulate $40,000 in seven years for a down payment on a house
b. To set aside 10% of income to replace a car
c. To invest $5,000 a year for retirement
d. To accumulate funds within the next 10 years for a child's college expenses
Answer - A
, During which of the following steps in the financial planning process is the
current yield from already-invested assets first identified?
a. Developing the financial planning recommendations
b. Implementing the financial planning recommendations
c. Understanding the client's personal and financial circumstances
d. Analyzing the client's current course of action and potential alternate
course(s) of action Answer - C
Potential problems that might interfere with clients achieving their objectives
are identified in which of the following steps in the financial planning process?
a. Implementing the financial planning recommendations
b. Analyzing the client's current course of action and potential alternate
course(s) of action
c. Understanding the client's personal and financial circumstances
d. Developing the financial planning recommendations Answer - B
Which of these would NOT be considered quantitative data?
a. Brokerage firm statements
b. Life insurance policies
c. Assets and liabilities
d. Health status Answer - D
Which of the following is something a financial planner would want to know
when creating a financial plan?
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