Principles

Question 1

Consumer debt interest ___ deductible

Answer 1

not deductible. It should be paid off first, as opposed to the following which are deductible.

Qualified residence - itemized deduction

trade or business debt - deductible against biz income and SE tax income

Investment debt - deduction against investment income i.e. div paying stocks.

Question 2

Decreasing expenditures and debt by the government is an expansionary or restrictive measure?

Answer 2

restrictive

Question 3

The __ standard, to provide professional services including responding to reasonable client inquiries, in a prompt and thorough manner

Answer 3

Diligence

Question 4

Advisor must report both bankruptcy and IRS lien within ___ days of each event

Answer 4

30

Question 5

TorF : A CFP professional has a duty to notify CFP board when he or she has been named as a subject of or whose conduct is mentioned adversely in a Regulatory Action or Investigation .

Answer 5

True

Question 6

ToF: A CFP professional must help the client identify goals and then help the client select and prioritze goals.

Answer 6

True

Question 7

Which is a qualitative measure?

• capacity for risk
• risk tolerance
• life expectancy
• earnings potential

Answer 7

capacity for risk