Fundamentals Flashcards
If the government wants to increase interest rates, what action might they take?
Sell government securities
Exceptions to Registration with SEC
- B/D who advisory services are solely incidental to their profession
- Lawyers, accountants, teachers and engineers
- Banks that are not investment companies
- Advisors who advice strictly to securities guaranteed by the US
What industries are typically more affected by recession with regard to production and employment?
Capital goods and consumer durable goods
Federal Pell Grant
Strictly needs based and dependent on the EFC amount
Only for students who have not earned their Bachelors degree or professional degree
Subsidized Stafford Loan
Undergraduate loan
Interest paid by federal government while student is still in school
Need based
Unsubsidized Loan
Available to undergrad and graduate students
Interest begins to accrue when funds are disbursed
Parent Loan for Undergraduate Students (PLUS)
For parents to pay for their children’s undergrad studies
Not needs based, depends on parent’s credit score
Not subsidized
Grad PLUS loan for Graduate Students
Graduate student must be enrolled at least half-time at an eligible school
Dependent on student credit score
Begin making payments 6 months after you are done with school
Duty of Diligence
CFP professional must provide professional services, including responding to reasonable client inquiries, in a timely and thorough manner
Rules of the Code of Ethics
Act in the Client’s best interest
Not engage in conduct which reflects adversely on his integrity or fitness as a certificant
Exercise due care
Sales Based Commission
More than any de minimis benefit tied to the sale of a financial asset
As a rule of thumb, it is best if monthly consumer debt payments do not exceed:
20% of net income
What can the federal reserve do to increase the money supply
Decrease the reserve requirement & conduct open-market transactions
What can the Federal Reserve do to reduce the money supply?
Raise the discount rate
Amount of money from 529 that can be used for private elementary school without incurring a penalty
$10000
