Question 1

Which of the following is an advantage associated with not qualifying for marital recognition?

Accepted Answer

A) The household members can engage in income shifting 
B) There is no liability for repaying the debts of the non marital partner 
C) One member may more easily qualify for federal aid in some circumstances 
D) All of the above are advantages 
E) Both b and c 
A) The household members can engage in income shifting 
B) There is no liability for repaying the debts of the non marital partner 
C) One member may more easily qualify for federal aid in some circumstances 
D) All of the above are advantages 
E) Both b and c D

Question 2

How does property insurance planning differ between married and unmarried couples?

Accepted Answer

A) By an unmarried couple,only one individual requires a homeowner's property and automobile policy 
B) By a married couple,a single homeowner's property and automobile policy automatically covers both husband and wife 
C) By an unmarried couple,a separate homeowner's property and automobile policy is required to cover both people 
D) Both a and b 
E) Both b and c 
A) By an unmarried couple,only one individual requires a homeowner's property and automobile policy 
B) By a married couple,a single homeowner's property and automobile policy automatically covers both husband and wife 
C) By an unmarried couple,a separate homeowner's property and automobile policy is required to cover both people 
D) Both a and b 
E) Both b and c E

Question 3

Which of the following is not a relevant factor in a division of assets during divorce planning?

Accepted Answer

A) Amount of nonmarital assets. 
B) Needs of the individual parties. 
C) Circumstances of Breakup. 
D) All of the above are relevant factors. 
E) None of the above is a relevant factor. 
A) Amount of nonmarital assets. 
B) Needs of the individual parties. 
C) Circumstances of Breakup. 
D) All of the above are relevant factors. 
E) None of the above is a relevant factor. E

Question 4

What is a springing power of attorney?

Accepted Answer

A) A power of attorney that is transferred to another individual at a defined point of time in a disability. 
B) A power of attorney that takes effect at a defined point of time in a disability. 
C) A power of attorney that takes effect retroactively. 
D) A power of attorney that takes effect immediately. 
E) None of the above. 
A) A power of attorney that is transferred to another individual at a defined point of time in a disability. 
B) A power of attorney that takes effect at a defined point of time in a disability. 
C) A power of attorney that takes effect retroactively. 
D) A power of attorney that takes effect immediately. 
E) None of the above.

Question 5

Alimony payments are:

Accepted Answer

A) Taxable to the payer at ordinary income rates and is tax-deductible by the recipient 
B) Taxable to the recipient at ordinary income rates and is tax-deductible by the payer 
C) Taxable to both the payer and recipient at ordinary income rates 
D) Is tax-deductible by both the payer and recipient 
E) None of the above 
A) Taxable to the payer at ordinary income rates and is tax-deductible by the recipient 
B) Taxable to the recipient at ordinary income rates and is tax-deductible by the payer 
C) Taxable to both the payer and recipient at ordinary income rates 
D) Is tax-deductible by both the payer and recipient 
E) None of the above

Question 6

Incentive stock options are:

Accepted Answer

A) Options that are not taxable to the recipient when the option is granted,even if the market price of the stock is higher at that time than the option price 
B) Options that are not taxable to the recipient when the option is granted,unless the market price of the stock is higher at that time than the option price 
C) Options that are not taxable to the recipient when the option is granted,unless the market price of the stock is lower at that time than the option price 
D) Options that are provided as an incentive for a manager to retire 
E) None of the above 
A) Options that are not taxable to the recipient when the option is granted,even if the market price of the stock is higher at that time than the option price 
B) Options that are not taxable to the recipient when the option is granted,unless the market price of the stock is higher at that time than the option price 
C) Options that are not taxable to the recipient when the option is granted,unless the market price of the stock is lower at that time than the option price 
D) Options that are provided as an incentive for a manager to retire 
E) None of the above

Question 7

Which of the following is not a factor that may be detailed in a letter of intent for special needs planning?

Accepted Answer

A) The operational factors involved with the care of the person 
B) An explanation of what is wrong with the incapacitated 
C) A list of all professionals and family members 
D) All of the above are factors 
E) None of the above is a factor 
A) The operational factors involved with the care of the person 
B) An explanation of what is wrong with the incapacitated 
C) A list of all professionals and family members 
D) All of the above are factors 
E) None of the above is a factor

Question 8

Please list three divorce payment alternatives,and indicate the tax deduction,taxable income,and appraisal characteristics of each.

Accepted Answer

The answer of Please list three divorce payment alternatives,and indicate...

Question 9

Under a Qualified Domestic Relations Order,

Accepted Answer

A) The spouse is entitled to one-half the value of assets in a pension,and no transfer of those assets can be made without his or her approval 
B) The spouse is entitled to the entire value of assets in a pension,and no transfer of those assets can be made without his or her approval 
C) The spouse is entitled to one-half the value of assets in a pension,though transfer of those assets can be made without his or her approval 
D) The spouse is entitled to the entire value of assets in a pension,though transfer of those assets can be made without his or her approval 
E) None of the above 
A) The spouse is entitled to one-half the value of assets in a pension,and no transfer of those assets can be made without his or her approval 
B) The spouse is entitled to the entire value of assets in a pension,and no transfer of those assets can be made without his or her approval 
C) The spouse is entitled to one-half the value of assets in a pension,though transfer of those assets can be made without his or her approval 
D) The spouse is entitled to the entire value of assets in a pension,though transfer of those assets can be made without his or her approval 
E) None of the above

Question 10

Which of the following is a method through which to effect transfers of a close held business in a tax efficient way?

Accepted Answer

A) An employee stock ownership plan 
B) An employee limited partnership 
C) A family limited stock ownership plan 
D) Both a and b 
E) Both b and c 
A) An employee stock ownership plan 
B) An employee limited partnership 
C) A family limited stock ownership plan 
D) Both a and b 
E) Both b and c

Question 11

Which of the following are not taxable to the recipient when the option is granted,but are taxed when the option is exercised?

Accepted Answer

A) Qualified stock options 
B) Nonqualified incentive options 
C) Nonqualified stock options 
D) Qualified incentive options 
E) None of the above 
A) Qualified stock options 
B) Nonqualified incentive options 
C) Nonqualified stock options 
D) Qualified incentive options 
E) None of the above

Question 12

Agreements that are entered into after marriage that provide the terms upon breakup due to death or divorce are called:

Accepted Answer

A) Prenuptial agreements 
B) Postnuptial agreements 
C) Divorce mediation 
D) Divorce arbitration 
E) None of the above 
A) Prenuptial agreements 
B) Postnuptial agreements 
C) Divorce mediation 
D) Divorce arbitration 
E) None of the above

Question 13

A former spouse is entitled to:

Accepted Answer

A) A Social Security benefit equal to 40 percent of the higher earning spouse's benefit,provided they were married for 8 years or more 
B) A Social Security benefit equal to 50 percent of the higher earning spouse's benefit,provided they were married for 10 years or more 
C) A Social Security benefit equal to 60 percent of the higher earning spouse's benefit,provided they were married for 12 years or more 
D) A Social Security benefit equal to 70 percent of the higher earning spouse's benefit,provided they were married for 4years or more 
E) None of the above 
A) A Social Security benefit equal to 40 percent of the higher earning spouse's benefit,provided they were married for 8 years or more 
B) A Social Security benefit equal to 50 percent of the higher earning spouse's benefit,provided they were married for 10 years or more 
C) A Social Security benefit equal to 60 percent of the higher earning spouse's benefit,provided they were married for 12 years or more 
D) A Social Security benefit equal to 70 percent of the higher earning spouse's benefit,provided they were married for 4years or more 
E) None of the above

Question 14

Unmarried couples who have retirement assets in joint name would have to prove that they contributed their monies as otherwise:

Accepted Answer

A) Assets are seized by the government 
B) Assets received during their lifetime could be considered a gift which could subject it to the combined estate gift tax 
C) Assets are subject to double taxation 
D) Both a and b 
E) Both b and c 
A) Assets are seized by the government 
B) Assets received during their lifetime could be considered a gift which could subject it to the combined estate gift tax 
C) Assets are subject to double taxation 
D) Both a and b 
E) Both b and c

Question 15

For each of the following,explain why it is a relevant factor in a division of assets during divorce planning:
a.Amount of nonmarital assets.
b.Needs of the individual parties.
c.Historical cost of living.
d.Circumstances of Breakup.
e.Human Assets.

Accepted Answer

a.Amount of nonmarital assets: When nonm

Question 16

Alimony is often referred to as:

Accepted Answer

A) Preservation 
B) Protection 
C) Maintenance 
D) Continuation 
E) None of the above 
A) Preservation 
B) Protection 
C) Maintenance 
D) Continuation 
E) None of the above

Question 17

Which of the following is an advantage associated with using a divorce lawyer?

Accepted Answer

A) May protect the uninformed 
B) May reduce the possibility of hidden or underappraised assets 
C) May result in higher payouts 
D) All of the above 
E) None of the above 
A) May protect the uninformed 
B) May reduce the possibility of hidden or underappraised assets 
C) May result in higher payouts 
D) All of the above 
E) None of the above

Question 18

Which of the following statements is inaccurate?

Accepted Answer

A) A prenuptial agreement is usually done when one party has much greater assets than the other and wants to protect them 
B) A prenuptial agreement provides for temporary separation of assets when one or more parties want to leave their money to someone else 
C) A prenuptial agreement must be voluntary 
D) All of the above statements are inaccurate 
E) All of the above statements are accurate 
A) A prenuptial agreement is usually done when one party has much greater assets than the other and wants to protect them 
B) A prenuptial agreement provides for temporary separation of assets when one or more parties want to leave their money to someone else 
C) A prenuptial agreement must be voluntary 
D) All of the above statements are inaccurate 
E) All of the above statements are accurate

Question 19

Which of the following is not a reason why second marriages often involve assets brought to the marriage that remain in each person's name rather than being fully integrated?

Accepted Answer

A) The expectation that the second marriage will fail 
B) Separate obligations from a previous marriage 
C) A more cautious attitude as one gets older 
D) Sizeable assets that have been accumulated 
E) All of the above are reasons 
A) The expectation that the second marriage will fail 
B) Separate obligations from a previous marriage 
C) A more cautious attitude as one gets older 
D) Sizeable assets that have been accumulated 
E) All of the above are reasons

Question 20

Property usually refers to:

Accepted Answer

A) The tangible assets owned by household members 
B) The financial assets owned by household members 
C) The real estate owned by household members 
D) Both a and b 
E) None of the above 
A) The tangible assets owned by household members 
B) The financial assets owned by household members 
C) The real estate owned by household members 
D) Both a and b 
E) None of the above

Exam 22: Behavioral Finance-Applications

Which of the following is an advantage associated with not qualifying for marital recognition?

How does property insurance planning differ between married and unmarried couples?

Which of the following is not a relevant factor in a division of assets during divorce planning?

What is a springing power of attorney?

Alimony payments are:

Incentive stock options are:

Which of the following is not a factor that may be detailed in a letter of intent for special needs planning?

Please list three divorce payment alternatives,and indicate the tax deduction,taxable income,and appraisal characteristics of each.

Under a Qualified Domestic Relations Order,

Which of the following is a method through which to effect transfers of a close held business in a tax efficient way?

Which of the following are not taxable to the recipient when the option is granted,but are taxed when the option is exercised?

Agreements that are entered into after marriage that provide the terms upon breakup due to death or divorce are called:

A former spouse is entitled to:

Unmarried couples who have retirement assets in joint name would have to prove that they contributed their monies as otherwise:

For each of the following,explain why it is a relevant factor in a division of assets during divorce planning: a.Amount of nonmarital assets. b.Needs of the individual parties. c.Historical cost of living. d.Circumstances of Breakup. e.Human Assets.

Alimony is often referred to as:

Which of the following is an advantage associated with using a divorce lawyer?

Which of the following statements is inaccurate?

Which of the following is not a reason why second marriages often involve assets brought to the marriage that remain in each person's name rather than being fully integrated?

Property usually refers to:

Introduction to PFP

Time Value of Money

Beginning the Planning Process

Household Finance

Financial Statements Analysis

Cash Flow Planning

Debt

Non Financial Investments

Financial Investments

Risk Management

Other Insurance

Retirement Planning

Educational Planning

Tax Planning

Estate Planning

Stocks, Bonds and Mutual Funds

Background Topics

Capital Needs Analysis

Behavioral Financial Planning

Modern Investment Theory

Employee Benefits

Comprehensive Financial Plan-Dan and Laura

Examining Financial Regulation and Ethics

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