Module 1 Quiz Flashcards
A client is seeking guidance in all areas of financial planning. Which of the following most closely describes the type of financial planning the client wants?
Comprehensive planning
A planner who addresses only the purchase of a first home for a client is practicing _____.
Targeted financial planning
Kiara has accumulated $10,000 in a savings account over the last few years and has earmarked that money as a down payment on a luxury boat. Her central air conditioner breaks and requires $5,000 in repairs. Kiara is reluctant to spend the money in her savings account to make the repairs because she wants to use that money for the boat down payment. Instead, she puts the $5,000 repair charge on her credit card at an annual interest rate of 23%. This is an example of which of these behaviors?
Mental accounting
Which of the following is a characteristic of properly stated financial goals?
Definite
When helping clients identify goals, financial planners should practice active listening skills by engaging in all of these except _____.
Offering suggestions for goals
During which of the following steps in the financial planning process is the current yield from already-invested assets first identified?
Understanding the client’s personal and financial circumstances
Asset categories that are appropriate for the client are determined during which of the following steps of the financial planning process?
Developing the financial planning recommendations
During which of the following steps of the financial planning process is the performance of a client’s investments reviewed periodically?
Monitoring progress and updating
Potential problems that might interfere with clients achieving their objectives are identified in which of the following steps in the financial planning process?
Analyzing the client’s current course of action and potential alternate course(s) of action
Which of these would NOT be considered quantitative data?
Health status
Which of the following is something a financial planner would want to know when creating a financial plan?
- Insurance needs
- Retirement income objectives
- Acceptable investment strategies
- Liquid assets available for emergencies
1, 2, 3, and 4
Which of the seven steps of the financial planning process follows the development of the financial planning recommendations?
Presenting the financial planning recommendations
Which of these is the best description of a fiduciary?
A fiduciary always puts the best interests of the client first
It is generally recommended by planners that an emergency fund be established. Which of the following guidelines is recommended?
Three to six months of living expenses in liquid investments
Which of these statements regarding financial planning is CORRECT?
Data gathering for a financial planning engagement includes both quantitative and qualitative data
Which of the following is a well-written goal?
To accumulate $500,000, by starting to save today, for retirement in 20 years
Limited resources is the main reason for _____.
Prioritizing goals
Which of the following is NOT a requirement of a properly stated goal?
Justification
All of these are Standards of Professional Conduct in the FPQP® Code of Ethics except _____.
Experience
When examinating retirement plan issues, which are the least likely to be considered?
Debt ratios
Which one of these is NOT a requirement to become a Financial Paraplanner Qualified Professional designee?
Bachelor’s degree
Which of these Financial Paraplanner Qualified Professional℠ Standards of Professional Conduct is matched with its CORRECT definition?
Diligence - respond to reasonable client inquiries in a timely manner
The FPQP® Code of Ethics requires compliance with all of these components except _____.
Observance of state statutes
Marcus is meeting with his clients, Ren and Amari, to define their goals. Ren tells Marcus one of his goals is purchasing a hunting camp in two years, and Amari rolls her eyes. What is the best action for Marcus to take next?
Recommend how Ren and Amari can pay for the camp
Which of these is especially important when discussing estate planning with a client?
Titling of assets and property
Which of these often occurs when developing financial planning recommendations?
Consideration of the economic environment and financial resources
Which of these designations or certifications is best suited for an assistant working with a financial planner?
Financial Paraplanner Qualified Professional℠(FPQP)®
Which of these helps clients shift their perspectives by considering circumstances, feelings, and thoughts from another perspective?
Reframing
Which of these is NOT a correct statement about the requirements of being a Financial Paraplanner Qualified ProfessionalSM designee?
A FPQP® designee must engage in 30 hours of continuing education every two years to maintain active status
Which of the following financial goals is written correctly?
To accumulate $40,000 in seven years for a down payment on a house
