Question 1

Which of the following is part of cash flow management?

Accepted Answer

A) Planning an emergency fund 
B) Choosing stock investments 
C) Finding a retirement fund 
D) Agreeing to a client's goals 
A) Planning an emergency fund 
B) Choosing stock investments 
C) Finding a retirement fund 
D) Agreeing to a client's goals

Question 2

At what stage should the financial planner assist most in organizing and maintaining retirement income?

Accepted Answer

A) Nesting Years 
B) Prime Time Years 
C) Wealth Accumulation Years 
D) Reinvention Years 
A) Nesting Years 
B) Prime Time Years 
C) Wealth Accumulation Years 
D) Reinvention Years

Question 3

The following are types of unemployment EXCEPT:

Accepted Answer

A) seasonal 
B) structural 
C) frictional 
D) dynamic 
A) seasonal 
B) structural 
C) frictional 
D) dynamic

Question 4

What type of product has underlying terms and conditions that meet the funding criteria set by Fannie Mae and Freddie Mac?

Accepted Answer

A) Conventional Mortgage 
B) Adjustable Rate Mortgage 
C) Ratio Mortgage 
D) Unsecured debt 
A) Conventional Mortgage 
B) Adjustable Rate Mortgage 
C) Ratio Mortgage 
D) Unsecured debt

Question 5

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

Question 6

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 7

If you are expecting to move within two years, what would be the best approach if you are looking for a place to live for those two years?

Accepted Answer

A) Buy a new home 
B) Rent a home 
C) Move in with in-laws 
D) Move in with parents 
A) Buy a new home 
B) Rent a home 
C) Move in with in-laws 
D) Move in with parents

Question 8

The aggregate quantity of raw and manufactured goods demanded by consumers increases when the:

Accepted Answer

A) personal consumption increases 
B) government spending decreases 
C) foreign investment decreases 
D) interest rates remain the same 
A) personal consumption increases 
B) government spending decreases 
C) foreign investment decreases 
D) interest rates remain the same

Question 9

What term is defined by slow economic growth, high unemployment, increased prices, and inflation?

Accepted Answer

A) Stagflation 
B) Deflation 
C) Inflation 
D) National Indicator 
A) Stagflation 
B) Deflation 
C) Inflation 
D) National Indicator

Question 10

The going concern concept is defined as:

Accepted Answer

A) An accountant showing due diligence throughout the accounting cycle. 
B) An owner showing interest and concern for his business. 
C) An accounting concept in which preparing financial statements on a regular basis ensures that the company is in good standing. 
D) An accounting concept that assumes the business is not shutting down in the foreseeable future. 
E) An accounting concept in which the business will have regular audits. 
A) An accountant showing due diligence throughout the accounting cycle. 
B) An owner showing interest and concern for his business. 
C) An accounting concept in which preparing financial statements on a regular basis ensures that the company is in good standing. 
D) An accounting concept that assumes the business is not shutting down in the foreseeable future. 
E) An accounting concept in which the business will have regular audits.

Question 11

When should you first present alternatives to the client?

Accepted Answer

A) Only if the client requests alternatives 
B) When you present your financial planning recommendations 
C) After presenting financial planning recommendations and receiving client feedback 
D) After monitoring the client's progress towards goals for a specified period 
A) Only if the client requests alternatives 
B) When you present your financial planning recommendations 
C) After presenting financial planning recommendations and receiving client feedback 
D) After monitoring the client's progress towards goals for a specified period

Question 12

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 13

How much emergency funds savings should there be?

Accepted Answer

A) 3 - 6 months 
B) 6 - 12 months 
C) 18 - 24 months 
D) 24 - 48 months 
A) 3 - 6 months 
B) 6 - 12 months 
C) 18 - 24 months 
D) 24 - 48 months

Question 14

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 15

What types of information should you analyze about the client's current financial situation?

Accepted Answer

A) Tax strategies 
B) Liabilities/expenses 
C) Insurance coverage 
D) All of the above 
A) Tax strategies 
B) Liabilities/expenses 
C) Insurance coverage 
D) All of the above

Question 16

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 17

What provides tools and insights that might help you with financial planning for your clients?

Accepted Answer

A) Attitudes 
B) Values 
C) Biases 
D) Behavioral finance 
A) Attitudes 
B) Values 
C) Biases 
D) Behavioral finance

Question 18

Which of the following is true regarding financial planning?

Accepted Answer

A) You do not need to know anything about the client's family history in order to effectively develop a financial planning strategy. 
B) Financial planning strategies are general; you can create one effective strategy that can be used for most of your clients. 
C) You should learn a client's risk tolerance before creating a financial planning strategy for that client. 
D) Clients are no more likely to implement recommendations where their personal values are reflected than recommendations that have worked for multiple others. 
A) You do not need to know anything about the client's family history in order to effectively develop a financial planning strategy. 
B) Financial planning strategies are general; you can create one effective strategy that can be used for most of your clients. 
C) You should learn a client's risk tolerance before creating a financial planning strategy for that client. 
D) Clients are no more likely to implement recommendations where their personal values are reflected than recommendations that have worked for multiple others.

Question 19

Employees at the Jackson factory have been given a substantial income raise of over 5%. As a result, the real income of these employees has risen which lead directly to an increase in the consumption of goods. What is this effect referred to?

Accepted Answer

A) spending effect 
B) thrift effect 
C) growth effect 
D) income effect 
A) spending effect 
B) thrift effect 
C) growth effect 
D) income effect

Question 20

When should you discuss a client's financial goals?

Accepted Answer

A) When gathering the client's financial data 
B) When analyzing the client's financial data 
C) After analyzing the client's financial data 
D) After analyzing the client's financial data and developing rough financial planning recommendations 
A) When gathering the client's financial data 
B) When analyzing the client's financial data 
C) After analyzing the client's financial data 
D) After analyzing the client's financial data and developing rough financial planning recommendations

Which of the following is part of cash flow management?

At what stage should the financial planner assist most in organizing and maintaining retirement income?

The following are types of unemployment EXCEPT:

What type of product has underlying terms and conditions that meet the funding criteria set by Fannie Mae and Freddie Mac?

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

Individual consumer debt should not exceed what amount:

If you are expecting to move within two years, what would be the best approach if you are looking for a place to live for those two years?

The aggregate quantity of raw and manufactured goods demanded by consumers increases when the:

What term is defined by slow economic growth, high unemployment, increased prices, and inflation?

The going concern concept is defined as:

When should you first present alternatives to the client?

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

How much emergency funds savings should there be?

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

What types of information should you analyze about the client's current financial situation?

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:

What provides tools and insights that might help you with financial planning for your clients?

Which of the following is true regarding financial planning?

Employees at the Jackson factory have been given a substantial income raise of over 5%. As a result, the real income of these employees has risen which lead directly to an increase in the consumption of goods. What is this effect referred to?

When should you discuss a client's financial goals?

Education Planning

Education Planning

Estate Planning

Estate Planning

General Principles of Financial Planning

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Investment Planning

Professional Conduct and Regulation

Professional Conduct and Regulation

Retirement Savings and Income Planning

Retirement Savings and Income Planning

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Risk Management and Insurance Planning

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Tax Planning

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Exam 3: General Principles of Financial Planning

Which of the following is part of cash flow management?

At what stage should the financial planner assist most in organizing and maintaining retirement income?

The following are types of unemployment EXCEPT:

What type of product has underlying terms and conditions that meet the funding criteria set by Fannie Mae and Freddie Mac?

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

Individual consumer debt should not exceed what amount:

If you are expecting to move within two years, what would be the best approach if you are looking for a place to live for those two years?

The aggregate quantity of raw and manufactured goods demanded by consumers increases when the:

What term is defined by slow economic growth, high unemployment, increased prices, and inflation?

The going concern concept is defined as:

When should you first present alternatives to the client?

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

How much emergency funds savings should there be?

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

What types of information should you analyze about the client's current financial situation?

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:

What provides tools and insights that might help you with financial planning for your clients?

Which of the following is true regarding financial planning?

Employees at the Jackson factory have been given a substantial income raise of over 5%. As a result, the real income of these employees has risen which lead directly to an increase in the consumption of goods. What is this effect referred to?

When should you discuss a client's financial goals?

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