Question 1

What type of product has interest rates associated with benchmarks determined by Treasury Bills or prime-rates?

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 2

What is the leading cause of disability?

Accepted Answer

A) Accidents at work 
B) Car accidents 
C) Physical illness 
D) Depression 
A) Accidents at work 
B) Car accidents 
C) Physical illness 
D) Depression

Question 3

What is the least effective, of the following, when working with clients?

Accepted Answer

A) Open-ended questions 
B) Closed-ended questions 
C) Probing questions 
D) Cultural sensitivities 
A) Open-ended questions 
B) Closed-ended questions 
C) Probing questions 
D) Cultural sensitivities

Question 4

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 5

What type of savings strategy focuses on realistic and agreed upon family behavior?

Accepted Answer

A) Saving-first Approach 
B) Self-rewarding Plan 
C) Realistic Behavior Approach 
D) Goal Setting 
A) Saving-first Approach 
B) Self-rewarding Plan 
C) Realistic Behavior Approach 
D) Goal Setting

Question 6

Over the past 8 years, the Zimbabwean currency has lost 90% of its value. This is an example of the ____________ effects of inflation on a local economy.

Accepted Answer

A) retroactive 
B) sliding 
C) positive 
D) negative 
A) retroactive 
B) sliding 
C) positive 
D) negative

Question 7

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 8

How many types of budgeting are there?

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 4 
A) 1 
B) 2 
C) 3 
D) 4

Question 9

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 10

When budgeting, what is an important step that many individuals miss?

Accepted Answer

A) Estimating income 
B) Breaking down expenses between discretionary and non-discretionary 
C) Considering methods to increase income 
D) Considering methods to decrease expenses 
A) Estimating income 
B) Breaking down expenses between discretionary and non-discretionary 
C) Considering methods to increase income 
D) Considering methods to decrease expenses

Question 11

When calculating unemployment figures in a given population, economists count those:

Accepted Answer

A) looking for paid work 
B) early retirees seeking extra income 
C) discouraged after long searches 
D) incarcerated in prisons 
A) looking for paid work 
B) early retirees seeking extra income 
C) discouraged after long searches 
D) incarcerated in prisons

Question 12

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)

Question 13

Where would a financial planner find a snapshot of an individual's wealth at particular moment in time?

Accepted Answer

A) Balance Sheet 
B) Pro forma Statement 
C) Statement of Financial Position 
D) Income Statement 
A) Balance Sheet 
B) Pro forma Statement 
C) Statement of Financial Position 
D) Income Statement

Question 14

Retained earnings are revenue of a corporation that is:

Accepted Answer

A) Not paid out in dividends 
B) Paid to shareholders 
C) Considered gross profit 
D) Shown in a trial balance 
E) Issued in stock 
A) Not paid out in dividends 
B) Paid to shareholders 
C) Considered gross profit 
D) Shown in a trial balance 
E) Issued in stock

Question 15

Jenny owns a bakery that makes hot cross buns. She purchased a delivery van to deliver her buns to local restaurants. She pays $300 each month for her loan payment on the van. This payment is an example of:

Accepted Answer

A) Increasing a liability 
B) Annualizing a debt 
C) Highway robbery 
D) Amortization 
E) Depreciation 
A) Increasing a liability 
B) Annualizing a debt 
C) Highway robbery 
D) Amortization 
E) Depreciation

Question 16

What determines how much money deposited today be worth at a specified time in the future?

Accepted Answer

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

Question 17

Which of the following should you do in order to effectively communicate with your clients?

Accepted Answer

A) Mirror the client's gestures, speech patterns, etc. 
B) Refrain from eye contact 
C) Disregard the client's facial expressions 
D) Use large hand gestures to ensure the client sees them 
A) Mirror the client's gestures, speech patterns, etc. 
B) Refrain from eye contact 
C) Disregard the client's facial expressions 
D) Use large hand gestures to ensure the client sees them

Question 18

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 19

Which of the following is a volitional change that a client may want you to help manage?

Accepted Answer

A) Paying for a child's education 
B) Inheritance 
C) Retirement 
D) Disability 
A) Paying for a child's education 
B) Inheritance 
C) Retirement 
D) Disability

Question 20

In 2007, the nominal Gross Domestic Product (GDP) of a small Asian country was 5% and the real GDP growth was 2%. What was the rate of inflation for this country?

Accepted Answer

A) 3% 
B) 10and 
C) 7% 
A) 3% 
B) 10and 
C) 7%

What type of product has interest rates associated with benchmarks determined by Treasury Bills or prime-rates?

What is the leading cause of disability?

What is the least effective, of the following, when working with clients?

What is the first step in budgeting?

What type of savings strategy focuses on realistic and agreed upon family behavior?

Over the past 8 years, the Zimbabwean currency has lost 90% of its value. This is an example of the ____________ effects of inflation on a local economy.

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

How many types of budgeting are there?

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

When budgeting, what is an important step that many individuals miss?

When calculating unemployment figures in a given population, economists count those:

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

Where would a financial planner find a snapshot of an individual's wealth at particular moment in time?

Retained earnings are revenue of a corporation that is:

Jenny owns a bakery that makes hot cross buns. She purchased a delivery van to deliver her buns to local restaurants. She pays $300 each month for her loan payment on the van. This payment is an example of:

What determines how much money deposited today be worth at a specified time in the future?

Which of the following should you do in order to effectively communicate with your clients?

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 a volitional change that a client may want you to help manage?

In 2007, the nominal Gross Domestic Product (GDP) of a small Asian country was 5% and the real GDP growth was 2%. What was the rate of inflation for this country?

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 type of product has interest rates associated with benchmarks determined by Treasury Bills or prime-rates?

What is the leading cause of disability?

What is the least effective, of the following, when working with clients?

What is the first step in budgeting?

What type of savings strategy focuses on realistic and agreed upon family behavior?

Over the past 8 years, the Zimbabwean currency has lost 90% of its value. This is an example of the ____________ effects of inflation on a local economy.

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

How many types of budgeting are there?

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

When budgeting, what is an important step that many individuals miss?

When calculating unemployment figures in a given population, economists count those:

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

Where would a financial planner find a snapshot of an individual's wealth at particular moment in time?

Retained earnings are revenue of a corporation that is:

Jenny owns a bakery that makes hot cross buns. She purchased a delivery van to deliver her buns to local restaurants. She pays $300 each month for her loan payment on the van. This payment is an example of:

What determines how much money deposited today be worth at a specified time in the future?

Which of the following should you do in order to effectively communicate with your clients?

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 a volitional change that a client may want you to help manage?

In 2007, the nominal Gross Domestic Product (GDP) of a small Asian country was 5% and the real GDP growth was 2%. What was the rate of inflation for this country?

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