Question 1

What is the least effective way to learn communication and counseling skills?

Accepted Answer

A) Experience 
B) Reading books on the topics 
C) Practice 
D) Working with others who have experience 
A) Experience 
B) Reading books on the topics 
C) Practice 
D) Working with others who have experience B

Question 2

Which of the following is the calculation you should use to determine the present value of a lump sum?

Accepted Answer

A) [(Future value)/(i+1)n] 
B) (Present value)*(i+1)n 
C) [(Future value)/(in +1)] 
D) (Present value)*(in +1) 
A) [(Future value)/(i+1)n] 
B) (Present value)*(i+1)n 
C) [(Future value)/(in +1)] 
D) (Present value)*(in +1) A

Question 3

Another name for an income statement is a:

Accepted Answer

A) Statement of cash flows 
B) Balance sheet 
C) Operating statement 
D) Statement of owner's equity 
E) Profit and loss statement 
A) Statement of cash flows 
B) Balance sheet 
C) Operating statement 
D) Statement of owner's equity 
E) Profit and loss statement E

Question 4

What concept places a discount rate that gives a project a net present value that is equal to zero?

Accepted Answer

A) Internal Rate of Return 
B) Serial Payments 
C) Net Present Value 
D) Uneven Cash Flows 
A) Internal Rate of Return 
B) Serial Payments 
C) Net Present Value 
D) Uneven Cash Flows

Question 5

Which is NOT involved in active listening?

Accepted Answer

A) Saying "okay" after every sentence 
B) Repeating what a client stated 
C) Paraphrasing a client's words 
D) Reflecting on the meaning of a client's words 
A) Saying "okay" after every sentence 
B) Repeating what a client stated 
C) Paraphrasing a client's words 
D) Reflecting on the meaning of a client's words

Question 6

You want to borrow money from a bank and your house is used as a mortgage, which serves as a protection for the bank in case you default on your repayment. In a mortgage loan, the house represents what of the following?

Accepted Answer

A) A debt. 
B) Collateral. 
C) An interest from lending the money. 
D) A credit risk. 
A) A debt. 
B) Collateral. 
C) An interest from lending the money. 
D) A credit risk.

Question 7

In economics, what term explains that higher prices reduce the demand for an item and lower prices increase the demand for an item?

Accepted Answer

A) Demand Curve 
B) Price Elasticity 
C) Price Inelasticity 
D) Law of Demand 
A) Demand Curve 
B) Price Elasticity 
C) Price Inelasticity 
D) Law of Demand

Question 8

In which stage of a client's life will education, employment, and debt management likely have a major impact on the client's financial status going forward?

Accepted Answer

A) Starting-Out Years 
B) Nesting Years 
C) Prime Time Years 
D) Wealth Accumulation Years 
A) Starting-Out Years 
B) Nesting Years 
C) Prime Time Years 
D) Wealth Accumulation Years

Question 9

With the introduction of government-funded health programs for the elderly and the poor, private health insurers have lost a substantial portion of their insured clients to these programs. The introduction of government-sponsored spending that curbs private investment is referred to as:

Accepted Answer

A) squeezing-out 
B) crowding-in 
C) crowding-out 
D) squeezing-in 
A) squeezing-out 
B) crowding-in 
C) crowding-out 
D) squeezing-in

Question 10

Ken's Canaries shows current assets of $150,000 and current liabilities of $75,000. If Ken uses cash to purchase canaries that will be resold, which is true of his working capital and current ratio?

Accepted Answer

A) Current ratio increases; working capital does not change. 
B) Both remain unchanged. 
C) Current ratio increases; working capital decreases. 
D) Current ratio does not change; working capital decreases. 
E) Both will increase. 
A) Current ratio increases; working capital does not change. 
B) Both remain unchanged. 
C) Current ratio increases; working capital decreases. 
D) Current ratio does not change; working capital decreases. 
E) Both will increase.

Question 11

Which of the following is NOT one of the three forms of change that clients turn to financial planners to help manage?

Accepted Answer

A) Environmental 
B) Preferred 
C) Volitional 
D) Life Cycle 
A) Environmental 
B) Preferred 
C) Volitional 
D) Life Cycle

Question 12

Which of the following is an example of an annuity due?

Accepted Answer

A) Lease payments 
B) Quarterly dividends from a company 
C) Partnership distributions 
D) Interest payments from bond issuers 
A) Lease payments 
B) Quarterly dividends from a company 
C) Partnership distributions 
D) Interest payments from bond issuers

Question 13

When were communication and counseling principles added to the Certified Financial Planner job task domains in the United States?

Accepted Answer

A) 2000 
B) 2009 
C) 2012 
D) 2015 
A) 2000 
B) 2009 
C) 2012 
D) 2015

Question 14

Individual consumer debt should not exceed what amount:

Accepted Answer

A) 10% 
B) 15% 
C) 20% 
D) 25% 
A) 10% 
B) 15% 
C) 20% 
D) 25%

Question 15

What type of mortgage loan allows homeowners to borrow against home equity as needed?

Accepted Answer

A) Home Equity Loan 
B) Home Equity Line of Credit 
C) Ratio Mortgage 
D) Unsecured debt 
A) Home Equity Loan 
B) Home Equity Line of Credit 
C) Ratio Mortgage 
D) Unsecured debt

Question 16

What type of mortgage is commonly referred to as "home equity debt?"

Accepted Answer

A) Home Equity Loan 
B) Adjustable Rate Mortgage 
C) Ratio Mortgage 
D) Unsecured debt 
A) Home Equity Loan 
B) Adjustable Rate Mortgage 
C) Ratio Mortgage 
D) Unsecured debt

Question 17

What is the first step in budgeting?

Accepted Answer

A) Record keeping 
B) Reviewing income and expenses to estimate future income and expenses 
C) Consider methods to increase income 
D) Consider methods to decrease expenses 
A) Record keeping 
B) Reviewing income and expenses to estimate future income and expenses 
C) Consider methods to increase income 
D) Consider methods to decrease expenses

Question 18

What is the purpose of the balance sheet?

Accepted Answer

A) To show cash flow 
B) To show solvency and income of the company in the current period 
C) To provide information on revenue and expenses 
D) To show the gross profit margin 
E) To provide a snapshot of the company's financial condition 
A) To show cash flow 
B) To show solvency and income of the company in the current period 
C) To provide information on revenue and expenses 
D) To show the gross profit margin 
E) To provide a snapshot of the company's financial condition

Question 19

What is defined as the current worth of a future sum of money given a specific rate of return?

Accepted Answer

A) Present Value 
B) Post Value 
C) Net Present Value 
D) Past Net Value 
A) Present Value 
B) Post Value 
C) Net Present Value 
D) Past Net Value

Question 20

What type of policy in finance is based off the decisions of the President and Congress?

Accepted Answer

A) Price Stability Policy 
B) Monetary Policy 
C) Consumers Policy 
D) Fiscal Policy 
A) Price Stability Policy 
B) Monetary Policy 
C) Consumers Policy 
D) Fiscal Policy

What is the least effective way to learn communication and counseling skills?

Which of the following is the calculation you should use to determine the present value of a lump sum?

Another name for an income statement is a:

What concept places a discount rate that gives a project a net present value that is equal to zero?

Which is NOT involved in active listening?

You want to borrow money from a bank and your house is used as a mortgage, which serves as a protection for the bank in case you default on your repayment. In a mortgage loan, the house represents what of the following?

In economics, what term explains that higher prices reduce the demand for an item and lower prices increase the demand for an item?

In which stage of a client's life will education, employment, and debt management likely have a major impact on the client's financial status going forward?

With the introduction of government-funded health programs for the elderly and the poor, private health insurers have lost a substantial portion of their insured clients to these programs. The introduction of government-sponsored spending that curbs private investment is referred to as:

Ken's Canaries shows current assets of $150,000 and current liabilities of $75,000. If Ken uses cash to purchase canaries that will be resold, which is true of his working capital and current ratio?

Which of the following is NOT one of the three forms of change that clients turn to financial planners to help manage?

Which of the following is an example of an annuity due?

When were communication and counseling principles added to the Certified Financial Planner job task domains in the United States?

Individual consumer debt should not exceed what amount:

What type of mortgage loan allows homeowners to borrow against home equity as needed?

What type of mortgage is commonly referred to as "home equity debt?"

What is the first step in budgeting?

What is the purpose of the balance sheet?

What is defined as the current worth of a future sum of money given a specific rate of return?

What type of policy in finance is based off the decisions of the President and Congress?

Education Planning

Education Planning

Estate Planning

Estate Planning

General Principles of Financial Planning

Investment Planning

Investment Planning

Professional Conduct and Regulation

Professional Conduct and Regulation

Retirement Savings and Income Planning

Retirement Savings and Income Planning

Risk Management and Insurance Planning

Risk Management and Insurance Planning

Tax Planning

Tax Planning

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Exam 3: General Principles of Financial Planning

What is the least effective way to learn communication and counseling skills?

Which of the following is the calculation you should use to determine the present value of a lump sum?

Another name for an income statement is a:

What concept places a discount rate that gives a project a net present value that is equal to zero?

Which is NOT involved in active listening?

You want to borrow money from a bank and your house is used as a mortgage, which serves as a protection for the bank in case you default on your repayment. In a mortgage loan, the house represents what of the following?

In economics, what term explains that higher prices reduce the demand for an item and lower prices increase the demand for an item?

In which stage of a client's life will education, employment, and debt management likely have a major impact on the client's financial status going forward?

With the introduction of government-funded health programs for the elderly and the poor, private health insurers have lost a substantial portion of their insured clients to these programs. The introduction of government-sponsored spending that curbs private investment is referred to as:

Ken's Canaries shows current assets of $150,000 and current liabilities of $75,000. If Ken uses cash to purchase canaries that will be resold, which is true of his working capital and current ratio?

Which of the following is NOT one of the three forms of change that clients turn to financial planners to help manage?

Which of the following is an example of an annuity due?

When were communication and counseling principles added to the Certified Financial Planner job task domains in the United States?

Individual consumer debt should not exceed what amount:

What type of mortgage loan allows homeowners to borrow against home equity as needed?

What type of mortgage is commonly referred to as "home equity debt?"

What is the first step in budgeting?

What is the purpose of the balance sheet?

What is defined as the current worth of a future sum of money given a specific rate of return?

What type of policy in finance is based off the decisions of the President and Congress?

Education Planning

Education Planning

Estate Planning

Estate Planning

General Principles of Financial Planning

Investment Planning

Investment Planning

Professional Conduct and Regulation

Professional Conduct and Regulation

Retirement Savings and Income Planning

Retirement Savings and Income Planning

Risk Management and Insurance Planning

Risk Management and Insurance Planning

Tax Planning

Tax Planning

Filters