Fundamentals & Insurance | Lesson 3: Elements of Financial Planning & Behavioral Considerations

Question 1

Which of the following is in the correct order?

a) Understanding the Client’s personal and financial circumstances, Identifying goals, Engagement
b) Engagement, Understanding the Client’s personal and financial circumstances, Identifying goals
c) Understanding the Client’s personal and financial circumstances, Engagement, Identifying goals
d) Identifying goals, Engagement, and Understanding the Client’s personal and financial circumstances

Answer 1

Answer: B
The Code and Standards parts A and B cover all the items that need to be in place as part of the client engagement, before entering into the active financial planning process of Understanding the Client’s Personal and Financial Circumstances, Identifying and Selecting Goals, Analyzing the Client’s Current Course of Actions and Potential Alternative Course of Action, Developing the Financial Planning Recommendations, Presenting the Financial Planning Recommendations, Implementing the Financial Planning Recommendations, and finally, Monitoring Progress and Updating (UlADPIM).

Question 2

Which of the following are important in nonverbal communication and behavior?

1. Body positioning
2. Body movement
3. Voice tone
4. Voice pitch

a) 1 and 4
b) 1 and 2
c) 2 and 4
d) 2 and 3

Answer 2

Answer: B

Options 1 and 2 are non-verbal choices. Options 3 and 4 are tied to verbal communication.