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CFP CERTIFICATION NEWEST ACTUAL EXAM QUESTIONS AND 100% CORRECT ANSWERS | A+ GRADE
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CFP CERTIFICATION NEWEST ACTUAL EXAM QUESTIONS AND 100% CORRECT ANSWERS | A+ GRADE
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CFP CERTIFICATION NEWEST ACTUALEXAM QUESTIONS AND 100% CORRECT
ANSWERS | A+ GRADE 2024-2025
What type of repayment caps the monthly payment based
on the borrower's income and family size? Correct Answer
Income Based Repayment
What type of repayment schedule is available if the
borrower has a high debt-to-income ratio and caps the
monthly payment based on the borrower's income and
family size? Correct Answer PAYE repayment (pay as you
earn)
What are the three options for tax-deferred savings
vehicles to fund education? Correct Answer 1) Qualified
tuition plans (prepaid tuition & 529 plans)
2) Coverdell ESA
3) US Gov't savings bonds
What are the three primary factors that impact the
elasticity of demand? Correct Answer 1) substitute
products
2) consumer's income
3) time
Examples that would cause the supply curve to shift up
and to the left? Correct Answer 1) decreased competition
2) outdated technology
,3) increased price of an input used in manufacturing
process
Examples that would cause the supply curve to shift down
and to the right? (HAPPENS MOST OFTEN) Correct
Answer 1) increased competition
2) improved technology/increase in efficiency
3) decreased price of an input used in manufacturing
process
What are the 3 fiduciary duties? Correct Answer 1) duty of
loyalty (manage conflicts of interest)
2) duty of care (diligence)
3) duty to follow client instructions (if reasonable and
lawful)
What are the 6 principles in the Code of Ethics? Correct
Answer 1) act with honesty, integrity, competence, and
diligence
2) act in the client's best interest
3) exercise due care
4) avoid or disclose and manage conflicts of interest
5) maintain confidentiality and privacy of client info
6) act in a manner that reflects positively on the CFP
certification
Who controls Monetary Policy? Correct Answer The Fed
Who controls Fiscal Policy? Correct Answer Congress
,What are the three tools of Fiscal Policy? Correct Answer
1) taxes
2) spending
3) debt management (deficit)
What are the 4 tools of the Fed? Correct Answer 1)
reserve requirements
2) discount rate
3) open market operations
4) interest rate on required balances/reserves
Increase in the money supply = Correct Answer
DECREASE interest rate
Decrease in the money supply = Correct Answer
INCREASE interest rate
What are examples of products/sectors that would have
INELASTIC demand? Correct Answer Gas,
pharmaceuticals. Necessities.
What are examples of products/sectors that would have
ELASTIC demand? Correct Answer Luxury products - cars
What is the value of total output within a country
(regardless of asset ownership) over a period of time?
Correct Answer Gross Domestic Product (GDP)
What is the value of total output by the citizens of a
country, regardless of where the production takes place?
Correct Answer Gross National Product (GNP)
, What is the greatest risk associated with unexpected
inflation? Correct Answer Loss in purchasing power
A slowdown in the rate of inflation = Correct Answer
Disinflation
A decrease in price levels = Correct Answer Deflation
What measures the overall price level for a basket of
consumer goods and services? Correct Answer Consumer
price index - CPI
What measures price level changes for materials used at
the producer (manufacturing) level? Correct Answer
Producer price index - PPI
What is the ratio of nominal GDP to real GDP that shows
the change in the value of output that results from
inflation? Correct Answer GDP Deflator
How are income and expenses listed on the income
statement? Correct Answer Over a period of time (year or
month)
How are assets and liabilities listed on the balance sheet?
Correct Answer At a moment in time (as of 12/31)
What tool for financial planning profiles a client based on a
person's "age and stage"? Correct Answer Life Cycle
Approach
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