Question 1

If a national bank has investment discretion over funds held for investment, what can the bank NOT do with those funds?

Accepted Answer

A) Keep the funds uninvested for an unspecified length of time 
B) Deposit the funds in a savings account in the same bank 
C) Deposit the funds in a savings account of an affiliated deposit institution 
D) Draw interest on any uninvested funds kept in a bank account 
A) Keep the funds uninvested for an unspecified length of time 
B) Deposit the funds in a savings account in the same bank 
C) Deposit the funds in a savings account of an affiliated deposit institution 
D) Draw interest on any uninvested funds kept in a bank account

Question 2

How often must a Certified Financial Planner/Investment Adviser, file Form ADV (registration form) with the SEC, reporting contact information and assets under your management?

Accepted Answer

A) Annually 
B) Quarterly 
C) Monthly 
D) Weekly 
A) Annually 
B) Quarterly 
C) Monthly 
D) Weekly

Question 3

Which of the following certificants is following the CFP Board's Principles?

Accepted Answer

A) Sam went to school with his client, William. Because of an old rivalry, Sam gives William advice that he knows is not accurate. 
B) Natalie does not like her client, Bert, who wants advice on planning for the next year's tax return. She researches the U.S. Tax Code and gives him the information, plus the reference for later use. 
C) Karen's assistant booked too many appointments for the day. Karen rushes through each client, giving them information without asking all of her normal questions. She is able to meet with all of her clients on that day. 
D) Bill's clients, Sarah and Paul, divorce each other. Bill continues to keep both of them as clients without telling them. 
A) Sam went to school with his client, William. Because of an old rivalry, Sam gives William advice that he knows is not accurate. 
B) Natalie does not like her client, Bert, who wants advice on planning for the next year's tax return. She researches the U.S. Tax Code and gives him the information, plus the reference for later use. 
C) Karen's assistant booked too many appointments for the day. Karen rushes through each client, giving them information without asking all of her normal questions. She is able to meet with all of her clients on that day. 
D) Bill's clients, Sarah and Paul, divorce each other. Bill continues to keep both of them as clients without telling them.

Question 4

Which of the following is NOT grounds for discipline?

Accepted Answer

A) Any act that violates the Code of Ethics 
B) Any act that violates the criminal laws of the United States 
C) Failure to respond to a request by the CFP Board staff 
D) Failure to meet a goal agreed to with a client 
A) Any act that violates the Code of Ethics 
B) Any act that violates the criminal laws of the United States 
C) Failure to respond to a request by the CFP Board staff 
D) Failure to meet a goal agreed to with a client

Question 5

What financial institution is the primary source for mortgage loans?

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

Question 6

What does the Truth in Lending regulation do?

Accepted Answer

A) Ensure that financial institutions disclose certain information to potential borrowers 
B) Ensure that potential borrowers are required to disclose certain information to financial institutions 
C) Require that financial institutions supply denied borrowers with specific information as to why the application was denied 
D) Ensure that borrowers can cancel any loan within 10 days of the loan 
A) Ensure that financial institutions disclose certain information to potential borrowers 
B) Ensure that potential borrowers are required to disclose certain information to financial institutions 
C) Require that financial institutions supply denied borrowers with specific information as to why the application was denied 
D) Ensure that borrowers can cancel any loan within 10 days of the loan

Question 7

Which of the following is NOT one of the forms of discipline?

Accepted Answer

A) Fines and penalties 
B) A private letter of reproach 
C) A public letter of reproach 
D) Additional continuance of education 
A) Fines and penalties 
B) A private letter of reproach 
C) A public letter of reproach 
D) Additional continuance of education

Question 8

What financial institution is associated with the McCarran-Ferguson Act?

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

Question 9

What, according to the Financial Planning Practice Standards, is vitally important in determining what activities the financial planner should do for the client?

Accepted Answer

A) The practitioner's recommendations 
B) The process of creating timelines 
C) The process of mutually defining goals, needs, and priorities 
D) The client's current financial state 
A) The practitioner's recommendations 
B) The process of creating timelines 
C) The process of mutually defining goals, needs, and priorities 
D) The client's current financial state

Question 10

When Congress passes a law that affects financial institutions, what is the first thing that happens after the President signs the law?

Accepted Answer

A) Regulated institutions make necessary changes to comply with the law 
B) The Federal Reserve drafts regulations to show how the law should be implemented 
C) The American public is invited to comment or make suggestions on the law 
D) The Federal Reserve Banks train examiners on how to evaluate whether financial institutions comply with the law 
A) Regulated institutions make necessary changes to comply with the law 
B) The Federal Reserve drafts regulations to show how the law should be implemented 
C) The American public is invited to comment or make suggestions on the law 
D) The Federal Reserve Banks train examiners on how to evaluate whether financial institutions comply with the law

Question 11

How long must a national bank keep records of any fiduciary account?

Accepted Answer

A) 5 years from the transaction date 
B) 5 years from the date the fiduciary account is closed 
C) 3 years from the transaction date 
D) 3 years from the date the fiduciary account is closed 
A) 5 years from the transaction date 
B) 5 years from the date the fiduciary account is closed 
C) 3 years from the transaction date 
D) 3 years from the date the fiduciary account is closed

Question 12

If there are limitations on your recommendation to a client based on business or regulatory requirements, what should you do?

Accepted Answer

A) Do what is best for the client, regardless of the requirements 
B) Refer the client to another practitioner 
C) Disclose any limitations to the client 
D) Assume that the client knows the regulations and proceed with the best available options 
A) Do what is best for the client, regardless of the requirements 
B) Refer the client to another practitioner 
C) Disclose any limitations to the client 
D) Assume that the client knows the regulations and proceed with the best available options

Question 13

What financial regulatory agency oversees firms that offer securities to the public?

Accepted Answer

A) Commodity Futures Trading Commission 
B) Office of Thrift Supervision 
C) Financial Industry Regulatory Authority 
D) Office of the Comptroller of the Currency 
A) Commodity Futures Trading Commission 
B) Office of Thrift Supervision 
C) Financial Industry Regulatory Authority 
D) Office of the Comptroller of the Currency

Question 14

During analysis and evaluation of the client's information, the financial planner should seek to understand the client's financial situation. Then, determine how well the client's resources and current financial actions can meet the client's goals, needs, and priorities. This relates to three of the Code of Ethics principles. Which of the following is NOT one of those principles?

Accepted Answer

A) Objectivity 
B) Competence 
C) Diligence 
D) Confidentiality 
A) Objectivity 
B) Competence 
C) Diligence 
D) Confidentiality

Question 15

What of the following is NOT a requirement under the Equal Credit Opportunity Act?

Accepted Answer

A) No creditor can discriminate on the basis of race, color, religion, national origin, sex, marital status, or age 
B) No creditor can retain a record of a credit application 
C) All creditors must notify applicants of any actions they take on any applications 
D) All creditors must supply applicants with a copy of any appraisal report that is used for a credit transaction 
A) No creditor can discriminate on the basis of race, color, religion, national origin, sex, marital status, or age 
B) No creditor can retain a record of a credit application 
C) All creditors must notify applicants of any actions they take on any applications 
D) All creditors must supply applicants with a copy of any appraisal report that is used for a credit transaction

If a national bank has investment discretion over funds held for investment, what can the bank NOT do with those funds?

How often must a Certified Financial Planner/Investment Adviser, file Form ADV (registration form) with the SEC, reporting contact information and assets under your management?

Which of the following certificants is following the CFP Board's Principles?

Which of the following is NOT grounds for discipline?

What financial institution is the primary source for mortgage loans?

What does the Truth in Lending regulation do?

Which of the following is NOT one of the forms of discipline?

What financial institution is associated with the McCarran-Ferguson Act?

What, according to the Financial Planning Practice Standards, is vitally important in determining what activities the financial planner should do for the client?

When Congress passes a law that affects financial institutions, what is the first thing that happens after the President signs the law?

How long must a national bank keep records of any fiduciary account?

If there are limitations on your recommendation to a client based on business or regulatory requirements, what should you do?

What financial regulatory agency oversees firms that offer securities to the public?

What of the following is NOT a requirement under the Equal Credit Opportunity Act?

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

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Exam 5: Professional Conduct and Regulation

If a national bank has investment discretion over funds held for investment, what can the bank NOT do with those funds?

How often must a Certified Financial Planner/Investment Adviser, file Form ADV (registration form) with the SEC, reporting contact information and assets under your management?

Which of the following certificants is following the CFP Board's Principles?

Which of the following is NOT grounds for discipline?

What financial institution is the primary source for mortgage loans?

What does the Truth in Lending regulation do?

Which of the following is NOT one of the forms of discipline?

What financial institution is associated with the McCarran-Ferguson Act?

What, according to the Financial Planning Practice Standards, is vitally important in determining what activities the financial planner should do for the client?

When Congress passes a law that affects financial institutions, what is the first thing that happens after the President signs the law?

How long must a national bank keep records of any fiduciary account?

If there are limitations on your recommendation to a client based on business or regulatory requirements, what should you do?

What financial regulatory agency oversees firms that offer securities to the public?

What of the following is NOT a requirement under the Equal Credit Opportunity Act?

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