Question 1

Peer groups are:

Accepted Answer

A)  Households in a similar demographic category, against whom the advisor measures a household's financial health. 
B)  Analysts that review a household's wealth from an objective and non-judgmental perspective. 
C)  Analysts that review a household's wealth from a subjective and behavioral perspective. 
D)  Friends and associates with similar backgrounds, against whom we measure ourselves. 
E)  None of the above 
A)  Households in a similar demographic category, against whom the advisor measures a household's financial health. 
B)  Analysts that review a household's wealth from an objective and non-judgmental perspective. 
C)  Analysts that review a household's wealth from a subjective and behavioral perspective. 
D)  Friends and associates with similar backgrounds, against whom we measure ourselves. 
E)  None of the above D

Question 2

Which of the following is not part of preplanning the interview process/?

Accepted Answer

A)  Ensure that the interview room is neat and free from distraction. 
B)  Review background about the client. 
C)  Select topics to be discussed in advance. 
D)  Prepare an analysis of the client's goals. 
E)  Prepare an outline of questions to be asked. 
A)  Ensure that the interview room is neat and free from distraction. 
B)  Review background about the client. 
C)  Select topics to be discussed in advance. 
D)  Prepare an analysis of the client's goals. 
E)  Prepare an outline of questions to be asked. D

Question 3

The purpose of the initial client interview is:

Accepted Answer

A)  To establish goals. 
B)  To gather data. 
C)  To establish whether the client and advisor wish to work together. 
D)  All of the above. 
E)  Only b and c above. 
A)  To establish goals. 
B)  To gather data. 
C)  To establish whether the client and advisor wish to work together. 
D)  All of the above. 
E)  Only b and c above. D

Question 4

Which discipline proposes that our goals are influenced by the way we were raised by our families and other groups of people in our environment?

Accepted Answer

A)  Biology. 
B)  Sociology. 
C)  Psychology. 
D)  None of the above. 
E)  Both sociology and psychology, exclusively. 
A)  Biology. 
B)  Sociology. 
C)  Psychology. 
D)  None of the above. 
E)  Both sociology and psychology, exclusively.

Question 5

Please list and define fifteen different life values.

Accepted Answer

Fifteen different life values and their

Question 6

Which of the following needs did the psychologist Abraham Maslow believe that people first try to satisfy?

Accepted Answer

A)  Self-esteem needs. 
B)  Basic or physiological needs. 
C)  The need for safety. 
D)  The need for belonging. 
E)  None of the above. 
A)  Self-esteem needs. 
B)  Basic or physiological needs. 
C)  The need for safety. 
D)  The need for belonging. 
E)  None of the above.

Question 7

Which of the following is typically not a characteristic of middle aged clients?

Accepted Answer

A)  Debt as a percentage of assets declines. 
B)  Consistent cost of living. 
C)  Increased sums saved for retirement. 
D)  All of the above are typically characteristics of middle aged clients. 
E)  None of the above is typically a characteristic of middle aged clients. 
A)  Debt as a percentage of assets declines. 
B)  Consistent cost of living. 
C)  Increased sums saved for retirement. 
D)  All of the above are typically characteristics of middle aged clients. 
E)  None of the above is typically a characteristic of middle aged clients.

Question 8

In strict finance parlance, we obtain the highest possible standard of living through:

Accepted Answer

A)  Striving for an attractive balance of life's factors. 
B)  Extending our objectives beyond just acquiring material items. 
C)  Striving to make the most money possible. 
D)  All of the above. 
E)  None of the above. 
A)  Striving for an attractive balance of life's factors. 
B)  Extending our objectives beyond just acquiring material items. 
C)  Striving to make the most money possible. 
D)  All of the above. 
E)  None of the above.

Question 9

Which of the following statements is applicable to financial planners?

Accepted Answer

A)  They may view themselves as assisting people in making their decisions. 
B)  They may be extremely sensitive to people's needs with financial rules taking a backseat. 
C)  They may view themselves as experts whose advice is correct and should be followed in all instances. 
D)  All of the above statements may be applicable to financial planners, with the degree of applicability depending on personality. 
E)  None of the above statements are applicable to financial planners. 
A)  They may view themselves as assisting people in making their decisions. 
B)  They may be extremely sensitive to people's needs with financial rules taking a backseat. 
C)  They may view themselves as experts whose advice is correct and should be followed in all instances. 
D)  All of the above statements may be applicable to financial planners, with the degree of applicability depending on personality. 
E)  None of the above statements are applicable to financial planners.

Question 10

What is empathy?

Accepted Answer

A)  Speaking positively about another person's strongly held beliefs. 
B)  Believing that you can rely on another person to perform as expected. 
C)  Trying to place oneself in another person's position. 
D)  Trying not to be judgmental about another person's position. 
E)  None of the above. 
A)  Speaking positively about another person's strongly held beliefs. 
B)  Believing that you can rely on another person to perform as expected. 
C)  Trying to place oneself in another person's position. 
D)  Trying not to be judgmental about another person's position. 
E)  None of the above.

Question 11

Biologists argue that:

Accepted Answer

A)  We are programmed through our genetic makeup to strive for certain objectives. 
B)  Our goals are influenced by the way we were raised by our families and other groups of people in our environment. 
C)  The underlying goal of most human behavior is to have as many pleasurable experiences as possible. 
D)  Goal oriented behavior is genetically limited to the pursuit of pleasure. 
E)  None of the above. 
A)  We are programmed through our genetic makeup to strive for certain objectives. 
B)  Our goals are influenced by the way we were raised by our families and other groups of people in our environment. 
C)  The underlying goal of most human behavior is to have as many pleasurable experiences as possible. 
D)  Goal oriented behavior is genetically limited to the pursuit of pleasure. 
E)  None of the above.

Question 12

Which of the following is typically not a characteristic of young clients?

Accepted Answer

A)  They place great emphasis on their current standard of living. 
B)  Savings are given lower priority. 
C)  Low risk tolerance. 
D)  All of the above are typically characteristics of young clients. 
E)  None of the above is typically a characteristic of young clients. 
A)  They place great emphasis on their current standard of living. 
B)  Savings are given lower priority. 
C)  Low risk tolerance. 
D)  All of the above are typically characteristics of young clients. 
E)  None of the above is typically a characteristic of young clients.

Question 13

Transmitting our thoughts and emotions through the spoken word is:

Accepted Answer

A)  Verbal communication. 
B)  A verbal message. 
C)  The only way to transmit a message. 
D)  Communicated through the tone of voice and intensity. 
E)  All of the above. 
A)  Verbal communication. 
B)  A verbal message. 
C)  The only way to transmit a message. 
D)  Communicated through the tone of voice and intensity. 
E)  All of the above.

Question 14

Life cycle stages include:

Accepted Answer

A)  Young, middle aged, and senior. 
B)  Child, adult, and elderly. 
C)  Student, employed, unemployed, retired. 
D)  Infant, child, adolescent, young adult, adult, elderly. 
E)  None of the above. 
A)  Young, middle aged, and senior. 
B)  Child, adult, and elderly. 
C)  Student, employed, unemployed, retired. 
D)  Infant, child, adolescent, young adult, adult, elderly. 
E)  None of the above.

Question 15

The substance of the client interview typically begins with:

Accepted Answer

A)  Small talk. 
B)  A simple question. 
C)  Probing questions. 
D)  Paraphrasing the client's questions. 
E)  None of the above. 
A)  Small talk. 
B)  A simple question. 
C)  Probing questions. 
D)  Paraphrasing the client's questions. 
E)  None of the above.

Question 16

Understanding and improving people's decision-making abilities so that they can more easily achieve the goals they set is the objective of:

Accepted Answer

A)  Personal financial planning. 
B)  Behavioral finance. 
C)  Behavioral financial planning. 
D)  Finance. 
E)  None of the above. 
A)  Personal financial planning. 
B)  Behavioral finance. 
C)  Behavioral financial planning. 
D)  Finance. 
E)  None of the above.

Question 17

The disciplines of economics and finance translate human motivations into common dollar terms as:

Accepted Answer

A)  Stripping emotion from decisions maximizes objectivity. 
B)  The disciplines of economics and finance are exclusively focused on rational decision making. 
C)  Dollar terms permit scientific measurement. 
D)  Most students of economics and finance are primarily interested in money. 
E)  None of the above. 
A)  Stripping emotion from decisions maximizes objectivity. 
B)  The disciplines of economics and finance are exclusively focused on rational decision making. 
C)  Dollar terms permit scientific measurement. 
D)  Most students of economics and finance are primarily interested in money. 
E)  None of the above.

Question 18

For each of the following categories of information required for a comprehensive financial plan, please detail the information that must be gathered:
(a) Retirement Planning
(b) Estate Planning
(c) Risk Management
(d) Employee Benefits
(e) Family Planning
(f) Educational Planning

Accepted Answer

The information that must be gathered fo

Question 19

Which of the following is typically not a characteristic of senior clients?

Accepted Answer

A)  Focused on the accumulation of wealth. 
B)  High risk tolerance. 
C)  Increased cost of living regardless of medical and eldercare costs. 
D)  All of the above are typically characteristics of senior clients. 
E)  None of the above is typically a characteristic of senior clients. 
A)  Focused on the accumulation of wealth. 
B)  High risk tolerance. 
C)  Increased cost of living regardless of medical and eldercare costs. 
D)  All of the above are typically characteristics of senior clients. 
E)  None of the above is typically a characteristic of senior clients.

Question 20

Personality is relevant to personal financial planning. This is primarily because:

Accepted Answer

A)  Personality affects our tolerance for risk which influences our planning actions. 
B)  The client's salary and career success is typically determined by the client's personality. 
C)  Understanding the client's personality allows the advisor to monitor the client for emotional outbursts. 
D)  Investment decisions are based on behavioral factors. 
E)  None of the above. 
A)  Personality affects our tolerance for risk which influences our planning actions. 
B)  The client's salary and career success is typically determined by the client's personality. 
C)  Understanding the client's personality allows the advisor to monitor the client for emotional outbursts. 
D)  Investment decisions are based on behavioral factors. 
E)  None of the above.

Peer groups are:

Which of the following is not part of preplanning the interview process/?

The purpose of the initial client interview is:

Which discipline proposes that our goals are influenced by the way we were raised by our families and other groups of people in our environment?

Please list and define fifteen different life values.

Which of the following needs did the psychologist Abraham Maslow believe that people first try to satisfy?

Which of the following is typically not a characteristic of middle aged clients?

In strict finance parlance, we obtain the highest possible standard of living through:

Which of the following statements is applicable to financial planners?

What is empathy?

Biologists argue that:

Which of the following is typically not a characteristic of young clients?

Transmitting our thoughts and emotions through the spoken word is:

Life cycle stages include:

The substance of the client interview typically begins with:

Understanding and improving people's decision-making abilities so that they can more easily achieve the goals they set is the objective of:

The disciplines of economics and finance translate human motivations into common dollar terms as:

For each of the following categories of information required for a comprehensive financial plan, please detail the information that must be gathered: (a) Retirement Planning (b) Estate Planning (c) Risk Management (d) Employee Benefits (e) Family Planning (f) Educational Planning

Which of the following is typically not a characteristic of senior clients?

Personality is relevant to personal financial planning. This is primarily because:

Introduction to PFP

Time Value of Money

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

Completing the Process

Filters

Exam 3: Beginning the Planning Process

Peer groups are:

Which of the following is not part of preplanning the interview process/?

The purpose of the initial client interview is:

Which discipline proposes that our goals are influenced by the way we were raised by our families and other groups of people in our environment?

Please list and define fifteen different life values.

Which of the following needs did the psychologist Abraham Maslow believe that people first try to satisfy?

Which of the following is typically not a characteristic of middle aged clients?

In strict finance parlance, we obtain the highest possible standard of living through:

Which of the following statements is applicable to financial planners?

What is empathy?

Biologists argue that:

Which of the following is typically not a characteristic of young clients?

Transmitting our thoughts and emotions through the spoken word is:

Life cycle stages include:

The substance of the client interview typically begins with:

Understanding and improving people's decision-making abilities so that they can more easily achieve the goals they set is the objective of:

The disciplines of economics and finance translate human motivations into common dollar terms as:

For each of the following categories of information required for a comprehensive financial plan, please detail the information that must be gathered: (a) Retirement Planning (b) Estate Planning (c) Risk Management (d) Employee Benefits (e) Family Planning (f) Educational Planning

Which of the following is typically not a characteristic of senior clients?

Personality is relevant to personal financial planning. This is primarily because:

Introduction to PFP

Time Value of Money

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

Completing the Process

Filters