Question 1

What agency is responsible for ensuring that businesses act fairly in commerce?

Accepted Answer

A) Federal Commerce Commission 
B) United States Treasury Department 
C) Federal Bureau of Investigation 
D) Federal Trade Commission 
A) Federal Commerce Commission 
B) United States Treasury Department 
C) Federal Bureau of Investigation 
D) Federal Trade Commission D

Question 2

What type of financial institution primary function is to trade stocks?

Accepted Answer

A) Credit Unions 
B) Brokerage Companies 
C) Insurance Companies 
D) Trust Companies 
A) Credit Unions 
B) Brokerage Companies 
C) Insurance Companies 
D) Trust Companies B

Question 3

What financial institution type is insured for losses up to $100,000?

Accepted Answer

A) Credit Unions 
B) Brokerage Companies 
C) Insurance Companies 
D) Trust Companies 
A) Credit Unions 
B) Brokerage Companies 
C) Insurance Companies 
D) Trust Companies A

Question 4

Who enforces and administers consumer protection laws?

Accepted Answer

A) Internal Revenue Service 
B) Federal Trade Commission 
C) Fair Credit Commission 
D) Equal Credit Commission 
A) Internal Revenue Service 
B) Federal Trade Commission 
C) Fair Credit Commission 
D) Equal Credit Commission

Question 5

What is the name of the committee that is responsible for reviewing and acting on possible violations of the Code of Ethics and Rules of Conduct?

Accepted Answer

A) Disciplinary and Ethics Commission 
B) Certified Financial Planner Ethics Board 
C) Board of Ethics Directors 
D) Ethics Commission 
A) Disciplinary and Ethics Commission 
B) Certified Financial Planner Ethics Board 
C) Board of Ethics Directors 
D) Ethics Commission

Question 6

If the DEC determines that suspension is required, what is the maximum period of suspension?

Accepted Answer

A) 1 year 
B) 3 years 
C) 5 years 
D) 10 years 
A) 1 year 
B) 3 years 
C) 5 years 
D) 10 years

Question 7

Under the Home Mortgage Disclosure Act, financial institutions must publicize certain information concerning home purchase loans, home improvement loans, refinances, and applications. How often must the financial institution record reportable transactions?

Accepted Answer

A) Monthly 
B) Quarterly 
C) Bi-annually 
D) Annually 
A) Monthly 
B) Quarterly 
C) Bi-annually 
D) Annually

Question 8

When the CFP Board Counsel receives information requiring an investigation, what is the first step in the investigation?

Accepted Answer

A) The CFP Board Counsel calls the respondent, requesting records for the investigation 
B) The CFP Board Counsel provides written notice to the respondent, giving 30 days to respond 
C) The CFP Board Counsel temporarily suspends the respondent until the investigation is complete 
D) The CFP Board Counsel provides written notice to the respondent, giving 20 days to respond 
A) The CFP Board Counsel calls the respondent, requesting records for the investigation 
B) The CFP Board Counsel provides written notice to the respondent, giving 30 days to respond 
C) The CFP Board Counsel temporarily suspends the respondent until the investigation is complete 
D) The CFP Board Counsel provides written notice to the respondent, giving 20 days to respond

Question 9

Which of the following is true regarding establishing a relationship with a client?

Accepted Answer

A) The scope of engagement must be in writing and signed by both the Certified Financial Planner and the client 
B) The Certified Financial Planner should identify the scope of engagement alone, after consulting with the client 
C) The Certified Financial Planner should let the client know all compensation arrangements 
D) The scope of engagement cannot change after the initial establishment of the relationship 
A) The scope of engagement must be in writing and signed by both the Certified Financial Planner and the client 
B) The Certified Financial Planner should identify the scope of engagement alone, after consulting with the client 
C) The Certified Financial Planner should let the client know all compensation arrangements 
D) The scope of engagement cannot change after the initial establishment of the relationship

Question 10

Which of the following is NOT a Principle outlined by the CFP Board?

Accepted Answer

A) Compassion 
B) Confidentiality 
C) Diligence 
D) Fairness 
A) Compassion 
B) Confidentiality 
C) Diligence 
D) Fairness

Question 11

Which of the following is one of the CFP Board's Financial Planning Practice Standards?

Accepted Answer

A) The financial planning practitioner should alone define any monitoring responsibilities 
B) The financial planning practitioner and the client shall mutually define the scope of the engagement before any financial planning service is provided 
C) The financial planning practitioner shall obtain quantitative information and documents during the course of implementing the engagement 
D) The financial planning practitioner shall evaluate the client's goals, needs, and priorities without considering the client's current financial situation 
A) The financial planning practitioner should alone define any monitoring responsibilities 
B) The financial planning practitioner and the client shall mutually define the scope of the engagement before any financial planning service is provided 
C) The financial planning practitioner shall obtain quantitative information and documents during the course of implementing the engagement 
D) The financial planning practitioner shall evaluate the client's goals, needs, and priorities without considering the client's current financial situation

Question 12

In which case does the CFP Board determine that a practitioner is a fiduciary?

Accepted Answer

A) When the client hires the practitioner in any capacity 
B) When the practitioner performs financial planning activities 
C) When the practitioner performs any activities other than financial planning activities 
D) When the client explicitly gives the practitioner "fiduciary" status in writing 
A) When the client hires the practitioner in any capacity 
B) When the practitioner performs financial planning activities 
C) When the practitioner performs any activities other than financial planning activities 
D) When the client explicitly gives the practitioner "fiduciary" status in writing

Question 13

According to the CFP Board's Code of Conduct, which of the following must a certificant do?

Accepted Answer

A) Lend money to clients when necessary 
B) Borrow money from clients 
C) Combine a client's property with his or her employer's property 
D) Return a client's property upon the client's request 
A) Lend money to clients when necessary 
B) Borrow money from clients 
C) Combine a client's property with his or her employer's property 
D) Return a client's property upon the client's request

Question 14

Based on the CFP Board's Principles, which of the following is demanded by integrity?

Accepted Answer

A) Candor 
B) Personal gain 
C) Legitimate differences of opinion 
D) Subordination of personal principles 
A) Candor 
B) Personal gain 
C) Legitimate differences of opinion 
D) Subordination of personal principles

Question 15

Which of the following is true regarding developing a client's financial planning recommendations?

Accepted Answer

A) You should not consider the client's current course of action when developing financial planning recommendations. 
B) You cannot provide a general recommendation; all recommendations must be specific. 
C) Your recommendations may differ from other practitioners, as long as they reasonably meet the client's goals. 
D) After considering recommendations, you can never request that a client change one of the mutually agreed goals. 
A) You should not consider the client's current course of action when developing financial planning recommendations. 
B) You cannot provide a general recommendation; all recommendations must be specific. 
C) Your recommendations may differ from other practitioners, as long as they reasonably meet the client's goals. 
D) After considering recommendations, you can never request that a client change one of the mutually agreed goals.

Question 16

Which regulation requires anyone initiating a debit from a consumer's bank account to notify the consumer of the type of transaction?

Accepted Answer

A) Reserve Requirements of Depository Institutions 
B) Disclosure and Reporting of CRA-Related Agreements 
C) Electronic Fund Transfers 
D) Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers through Fedwire 
A) Reserve Requirements of Depository Institutions 
B) Disclosure and Reporting of CRA-Related Agreements 
C) Electronic Fund Transfers 
D) Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers through Fedwire

Question 17

What Federal Trade Commission Statue forces the disclosure of finance charges?

Accepted Answer

A) Truth in Lending Act 
B) Fair Credit Billing Act 
C) Equal Credit Opportunity Act 
D) Credit Protection Act 
A) Truth in Lending Act 
B) Fair Credit Billing Act 
C) Equal Credit Opportunity Act 
D) Credit Protection Act

Question 18

The CFP Board requires that certificants do what as part of Principle 3 - Competence?

Accepted Answer

A) Treat others as you would want to be treated 
B) Be impartial 
C) Keep each client's account as long as the client wants 
D) Consult or refer to others when you do not know something 
A) Treat others as you would want to be treated 
B) Be impartial 
C) Keep each client's account as long as the client wants 
D) Consult or refer to others when you do not know something

Question 19

What Federal Trade Commission Statue protects individuals from lost or stolen credit card penalties?

Accepted Answer

A) Truth in Lending Act 
B) Fair Credit Billing Act 
C) Equal Credit Opportunity Act 
D) Credit Protection Act 
A) Truth in Lending Act 
B) Fair Credit Billing Act 
C) Equal Credit Opportunity Act 
D) Credit Protection Act

Question 20

What Federal Trade Commission Statue focuses on discrimination?

Accepted Answer

A) Truth in Lending Act 
B) Fair Credit Billing Act 
C) Equal Credit Opportunity Act 
D) Credit Protection Act 
A) Truth in Lending Act 
B) Fair Credit Billing Act 
C) Equal Credit Opportunity Act 
D) Credit Protection Act

What agency is responsible for ensuring that businesses act fairly in commerce?

What type of financial institution primary function is to trade stocks?

What financial institution type is insured for losses up to $100,000?

Who enforces and administers consumer protection laws?

What is the name of the committee that is responsible for reviewing and acting on possible violations of the Code of Ethics and Rules of Conduct?

If the DEC determines that suspension is required, what is the maximum period of suspension?

Under the Home Mortgage Disclosure Act, financial institutions must publicize certain information concerning home purchase loans, home improvement loans, refinances, and applications. How often must the financial institution record reportable transactions?

When the CFP Board Counsel receives information requiring an investigation, what is the first step in the investigation?

Which of the following is true regarding establishing a relationship with a client?

Which of the following is NOT a Principle outlined by the CFP Board?

Which of the following is one of the CFP Board's Financial Planning Practice Standards?

In which case does the CFP Board determine that a practitioner is a fiduciary?

According to the CFP Board's Code of Conduct, which of the following must a certificant do?

Based on the CFP Board's Principles, which of the following is demanded by integrity?

Which of the following is true regarding developing a client's financial planning recommendations?

Which regulation requires anyone initiating a debit from a consumer's bank account to notify the consumer of the type of transaction?

What Federal Trade Commission Statue forces the disclosure of finance charges?

The CFP Board requires that certificants do what as part of Principle 3 - Competence?

What Federal Trade Commission Statue protects individuals from lost or stolen credit card penalties?

What Federal Trade Commission Statue focuses on discrimination?

Education Planning

Education Planning

Estate Planning

Estate Planning

General Principles of Financial Planning

General Principles of Financial Planning

Investment Planning

Investment Planning

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

Exam 5: Professional Conduct and Regulation

What agency is responsible for ensuring that businesses act fairly in commerce?

What type of financial institution primary function is to trade stocks?

What financial institution type is insured for losses up to $100,000?

Who enforces and administers consumer protection laws?

What is the name of the committee that is responsible for reviewing and acting on possible violations of the Code of Ethics and Rules of Conduct?

If the DEC determines that suspension is required, what is the maximum period of suspension?

Under the Home Mortgage Disclosure Act, financial institutions must publicize certain information concerning home purchase loans, home improvement loans, refinances, and applications. How often must the financial institution record reportable transactions?

When the CFP Board Counsel receives information requiring an investigation, what is the first step in the investigation?

Which of the following is true regarding establishing a relationship with a client?

Which of the following is NOT a Principle outlined by the CFP Board?

Which of the following is one of the CFP Board's Financial Planning Practice Standards?

In which case does the CFP Board determine that a practitioner is a fiduciary?

According to the CFP Board's Code of Conduct, which of the following must a certificant do?

Based on the CFP Board's Principles, which of the following is demanded by integrity?

Which of the following is true regarding developing a client's financial planning recommendations?

Which regulation requires anyone initiating a debit from a consumer's bank account to notify the consumer of the type of transaction?

What Federal Trade Commission Statue forces the disclosure of finance charges?

The CFP Board requires that certificants do what as part of Principle 3 - Competence?

What Federal Trade Commission Statue protects individuals from lost or stolen credit card penalties?

What Federal Trade Commission Statue focuses on discrimination?

Education Planning

Education Planning

Estate Planning

Estate Planning

General Principles of Financial Planning

General Principles of Financial Planning

Investment Planning

Investment Planning

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