CFP Practice Questions with 100% Correct Answers

CFP Practice Questions with 100% Correct Answers 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 Answer️️ -B Perkins loans - Correct Answer️️ -Low-interest federal student loans for undergraduate and graduate students distributed on the basis financial need. Are Parent Loans to Undergraduate Students (PLUS) available to both full and part time students? - Correct Answer️️ -No, only available to full time students Perfect elasticity results in a ______ demand curve, perfect inelasticity results in a _____ demand curve A) vertical, horizontal B) horizontal, vertical C) Diagonal, horizontal D) Vertical, diagonal - Correct Answer️️ -B, Horizontal, vertical Money in a coverdell savings account must be used by the time beneficiary is ____years of age - Correct Answer️️ -30 A Change in quantity supplied is identified bu which of the following? A) Shifting the demand curve B) Shifting the supply Curve C) Movement along the supply curve D) Movement along the demand curve - Correct Answer️️ -C- This is the willingness to offer the same product at different prices. If an RIA has betwen _____ and ____ of assets under management, the IRA may register with either the applicable states where the RIA maintains clients, or the SEC A) 10MM & 100MM B) 25MM and 100MM C) 50MM and 150MM D) 100MM and 200MM - Correct Answer️️ -B According to the principle of _______ a CFP Board designee shall enter into a financial planning engagement only when the relationship is warranted based on the individual needs and objectives A) Integrity B) Fairness C) Competence D) Diligence - Correct Answer️️ -D Which of the following are among the economic goals of the Federal Reserve and the US Treasury? 1) Full Employment 2) Stable Prices 3) Economic Growth 4) Decrease Governmental Spending A) 1 and 4 B) 3 and 4 C) 1, 2, and 3 D) All of the Above - Correct Answer️️ -C Monetary policy refers to actions taken by the ______ to control the money supply, often by targeting a specific rate of interest A) US Treasury B) Federal Reserve C) Executive Branch D) US Secretary of the Treasury - Correct Answer️️ -B) Federal Reserve Monetary policy is carried out through all but which of the following methods? A) Taxation B) Open market operations C) Changing the reserve requirements D) Changing the discount rate - Correct Answer️️ -A) Taxation A recession is a decline in real GDP for ______ or more consecutive quarters, A depression is a decline in real GDP for ____ or more consecutive quarters a) 2,4 b) 3,6 c) 2,6 d) 4,6 - Correct Answer️️ -C) 2,6 Gross Domestic Product (GDP) = C+I+G+E. The variables C, I, G and E stand for which of the following 1) C= personal consumption 2) I= Issuance of government bonds 3) G= Government consumption 4) E = Exports - Correct Answer️️ -B