Question 1

Economists quantify goals in:

Accepted Answer

A)  Financial terms. 
B)  Utility terms. 
C)  Leisure terms. 
D)  Behavioral terms. 
E)  None of the above. 
A)  Financial terms. 
B)  Utility terms. 
C)  Leisure terms. 
D)  Behavioral terms. 
E)  None of the above.

Question 2

For which type of planning do we require current projected income and expenses?

Accepted Answer

A)  Income tax planning. 
B)  Cash flow planning. 
C)  Estate planning. 
D)  Specialized planning. 
E)  None of the above. 
A)  Income tax planning. 
B)  Cash flow planning. 
C)  Estate planning. 
D)  Specialized planning. 
E)  None of the above.

Question 3

Long-term goals are those you expect to accomplish in:

Accepted Answer

A)  Five years or more. 
B)  Ten years or more. 
C)  Twelve years or more. 
D)  Fifteen years or more. 
E)  Upon retirement. 
A)  Five years or more. 
B)  Ten years or more. 
C)  Twelve years or more. 
D)  Fifteen years or more. 
E)  Upon retirement.

Question 4

The life value of being seen as successful and receiving acknowledgement for achievement is:

Accepted Answer

A)  Pleasure. 
B)  Autonomy. 
C)  Recognition. 
D)  Friendship. 
E)  None of the above. 
A)  Pleasure. 
B)  Autonomy. 
C)  Recognition. 
D)  Friendship. 
E)  None of the above.

Question 5

Behavioral finance can best be defined as:

Accepted Answer

A)  How to improve people's decision-making abilities so that they can more easily achieve the goals they set. 
B)  The study of human actions in financial matters. 
C)  How to understand people's decision-making abilities so that they can more easily achieve the goals they set. 
D)  The study of how behavior is shaped by an individual's financial well-being. 
E)  None of the above. 
A)  How to improve people's decision-making abilities so that they can more easily achieve the goals they set. 
B)  The study of human actions in financial matters. 
C)  How to understand people's decision-making abilities so that they can more easily achieve the goals they set. 
D)  The study of how behavior is shaped by an individual's financial well-being. 
E)  None of the above.

Question 6

Which of the following is not a rule that can help you become a more effective listener?

Accepted Answer

A)  Do more listening than talking. 
B)  Avoid trying to get into the other person's way of thinking. 
C)  Keep your responses to the topic being discussed. 
D)  Focus your full attention. 
E)  All of the above are rules that can help you become a more effective listener. 
A)  Do more listening than talking. 
B)  Avoid trying to get into the other person's way of thinking. 
C)  Keep your responses to the topic being discussed. 
D)  Focus your full attention. 
E)  All of the above are rules that can help you become a more effective listener.

Question 7

What is the first step in the financial planning process?

Accepted Answer

A)  Gather data. 
B)  Communicate investment objectives to client. 
C)  Identify household spending. 
D)  Identify household goals and needs. 
E)  None of the above. 
A)  Gather data. 
B)  Communicate investment objectives to client. 
C)  Identify household spending. 
D)  Identify household goals and needs. 
E)  None of the above.

Question 8

Which of the following best describes the relation, in practice, between financial counseling and financial advising?

Accepted Answer

A)  Professionals choose to provide either financial counseling or financial advising, and rarely combine the two. 
B)  Financial counseling and financial advising are often combined with little distinction made between the two. 
C)  Professionals typically focus on financial counseling exclusively. 
D)  Professionals typically focus on financial advising exclusively. 
E)  None of the above. 
A)  Professionals choose to provide either financial counseling or financial advising, and rarely combine the two. 
B)  Financial counseling and financial advising are often combined with little distinction made between the two. 
C)  Professionals typically focus on financial counseling exclusively. 
D)  Professionals typically focus on financial advising exclusively. 
E)  None of the above.

Question 9

The conclusion of the client interview typically includes:

Accepted Answer

A)  The advisor indicating that the time is drawing to a close. 
B)  The advisor summing the points covered during the meeting. 
C)  The advisor establishing a date or other plan for action. 
D)  All of the above. 
E)  None of the above. 
A)  The advisor indicating that the time is drawing to a close. 
B)  The advisor summing the points covered during the meeting. 
C)  The advisor establishing a date or other plan for action. 
D)  All of the above. 
E)  None of the above.

Question 10

If clients show resistance to the financial planner's advice, the financial planner may:

Accepted Answer

A)  Try to persuade the clients that their ways of viewing the matter aren't accurate. 
B)  Change the advice. 
C)  Try to persuade the clients that their ways of viewing the matter aren't in their interest. 
D)  All of the above. 
E)  None of the above. 
A)  Try to persuade the clients that their ways of viewing the matter aren't accurate. 
B)  Change the advice. 
C)  Try to persuade the clients that their ways of viewing the matter aren't in their interest. 
D)  All of the above. 
E)  None of the above.

Question 11

Financial counseling is best defined as:

Accepted Answer

A)  Assisting clients in making their financial decisions. 
B)  Making financial decisions for clients. 
C)  The provision of legal advice related to financial matters. 
D)  The analysis of the client's portfolio of investments. 
E)  None of the above. 
A)  Assisting clients in making their financial decisions. 
B)  Making financial decisions for clients. 
C)  The provision of legal advice related to financial matters. 
D)  The analysis of the client's portfolio of investments. 
E)  None of the above.

Question 12

Which of the following is not a reason to communicate?

Accepted Answer

A)  To express your opinion or feelings about a matter. 
B)  To convey specific facts. 
C)  To develop a relationship with another person. 
D)  To persuade someone to follow your advice. 
E)  All of the above are reasons to communicate. 
A)  To express your opinion or feelings about a matter. 
B)  To convey specific facts. 
C)  To develop a relationship with another person. 
D)  To persuade someone to follow your advice. 
E)  All of the above are reasons to communicate.

Question 13

Which of the following characterizes communication?

Accepted Answer

A)  It is the ability to transmit a message successfully to another person. 
B)  It is required to demonstrate to others that we possess desirable traits. 
C)  It is necessary even if you are honest, knowledgeable, and concerned. 
D)  All of the above. 
E)  None of the above. 
A)  It is the ability to transmit a message successfully to another person. 
B)  It is required to demonstrate to others that we possess desirable traits. 
C)  It is necessary even if you are honest, knowledgeable, and concerned. 
D)  All of the above. 
E)  None of the above.

Question 14

Financial advisors should set aside judgments for the balance of the consultation when:

Accepted Answer

A)  The client expresses dismay over the advisor's fee. 
B)  The advice extends beyond hard financial practices and the client's wishes to the advisor's own preferences. 
C)  The advice does not maximize the advisor's own interests. 
D)  All of the above. 
E)  None of the above. 
A)  The client expresses dismay over the advisor's fee. 
B)  The advice extends beyond hard financial practices and the client's wishes to the advisor's own preferences. 
C)  The advice does not maximize the advisor's own interests. 
D)  All of the above. 
E)  None of the above.

Economists quantify goals in:

For which type of planning do we require current projected income and expenses?

Long-term goals are those you expect to accomplish in:

The life value of being seen as successful and receiving acknowledgement for achievement is:

Behavioral finance can best be defined as:

Which of the following is not a rule that can help you become a more effective listener?

What is the first step in the financial planning process?

Which of the following best describes the relation, in practice, between financial counseling and financial advising?

The conclusion of the client interview typically includes:

If clients show resistance to the financial planner's advice, the financial planner may:

Financial counseling is best defined as:

Which of the following is not a reason to communicate?

Which of the following characterizes communication?

Financial advisors should set aside judgments for the balance of the consultation when:

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

Economists quantify goals in:

For which type of planning do we require current projected income and expenses?

Long-term goals are those you expect to accomplish in:

The life value of being seen as successful and receiving acknowledgement for achievement is:

Behavioral finance can best be defined as:

Which of the following is not a rule that can help you become a more effective listener?

What is the first step in the financial planning process?

Which of the following best describes the relation, in practice, between financial counseling and financial advising?

The conclusion of the client interview typically includes:

If clients show resistance to the financial planner's advice, the financial planner may:

Financial counseling is best defined as:

Which of the following is not a reason to communicate?

Which of the following characterizes communication?

Financial advisors should set aside judgments for the balance of the consultation when:

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