Question 1

During the personal financial planning process, a financial planner will not gather data related to:

Accepted Answer

A)  Household financial assets. 
B)  Household income and expenditures. 
C)  Age and health of members in the household. 
D)  The household's tolerance of risk 
E)  Data will be gathered in relation to all of the above. 
A)  Household financial assets. 
B)  Household income and expenditures. 
C)  Age and health of members in the household. 
D)  The household's tolerance of risk 
E)  Data will be gathered in relation to all of the above. E

Question 2

Capital is best defined as:

Accepted Answer

A)  The places where tangible goods and financial instruments like stocks and bonds are bought and sold. 
B)  The economic operation of the organization based on the cash it generates. 
C)  The real, financial, and human related assets that are generated by individuals and organizations or bought and sold in the marketplace. 
D)  None of the above. 
E)  All of the above. 
A)  The places where tangible goods and financial instruments like stocks and bonds are bought and sold. 
B)  The economic operation of the organization based on the cash it generates. 
C)  The real, financial, and human related assets that are generated by individuals and organizations or bought and sold in the marketplace. 
D)  None of the above. 
E)  All of the above. C

Question 3

Which of the following statements about personal financial planning is inaccurate?

Accepted Answer

A)  Personal financial planning is used by people to anticipate and plot their future actions to reach their goals. 
B)  Personal financial planning is used to solve a problem or to structure a plan for the future. 
C)  Personal financial planning is the analysis and decision-making extension of personal finance. 
D)  All of the above statements are accurate. 
E)  None of the above statements are accurate. 
A)  Personal financial planning is used by people to anticipate and plot their future actions to reach their goals. 
B)  Personal financial planning is used to solve a problem or to structure a plan for the future. 
C)  Personal financial planning is the analysis and decision-making extension of personal finance. 
D)  All of the above statements are accurate. 
E)  None of the above statements are accurate. D

Question 4

Planning for yourself and others while you are alive, and for current and former members of your household and other people or institutions upon your death, is designated:

Accepted Answer

A)  Special circumstances planning 
B)  Retirement planning 
C)  Estate planning 
D)  Cash flow planning 
E)  Investment planning 
A)  Special circumstances planning 
B)  Retirement planning 
C)  Estate planning 
D)  Cash flow planning 
E)  Investment planning

Question 5

Which of the following is not an example of a service that financial planners typically provide?

Accepted Answer

A)  Comprehensive financial plan construction. 
B)  Elimination of debt difficulties. 
C)  Retirement planning. 
D)  Taxes reduction through planning, products and structures. 
E)  All of the above are examples of services that financial planners typically provide. 
A)  Comprehensive financial plan construction. 
B)  Elimination of debt difficulties. 
C)  Retirement planning. 
D)  Taxes reduction through planning, products and structures. 
E)  All of the above are examples of services that financial planners typically provide.

Question 6

Why do the disciplines of psychology and sociology have a role in the practice of personal financial planning?

Accepted Answer

A)  They provide logical, rather than emotional, explanations for how people act. 
B)  They provide behavioral, rather than logical, explanations for how people act. 
C)  They explain how people should act. 
D)  They help us understand how people and households allocate scarce resources. 
E)  They provide therapies that can reduce the anxiety faced by clients. 
A)  They provide logical, rather than emotional, explanations for how people act. 
B)  They provide behavioral, rather than logical, explanations for how people act. 
C)  They explain how people should act. 
D)  They help us understand how people and households allocate scarce resources. 
E)  They provide therapies that can reduce the anxiety faced by clients.

Question 7

Employee benefits are best defined as:

Accepted Answer

A)  The satisfaction employees feel when working for a successful company. 
B)  The benefits that flow to employers from hiring additional employees. 
C)  Forms of employee compensation other than salary. 
D)  Tax-deductible compensation employees receive for retirement purposes. 
E)  None of the above. 
A)  The satisfaction employees feel when working for a successful company. 
B)  The benefits that flow to employers from hiring additional employees. 
C)  Forms of employee compensation other than salary. 
D)  Tax-deductible compensation employees receive for retirement purposes. 
E)  None of the above.

Question 8

Personal financial planning must satisfy four broad categories of personal-finance decisions: consumption and savings, investments, financing, and risk management. Into which category does each of the following five examples belong?

Accepted Answer

@#IMG-DLM& The five examples a

Question 9

Which of the following are not considered part of the financial plan?

Accepted Answer

A)  Tax planning 
B)  Investment planning 
C)  Capital budgeting 
D)  Risk Management 
E)  Employee benefits 
A)  Tax planning 
B)  Investment planning 
C)  Capital budgeting 
D)  Risk Management 
E)  Employee benefits

Question 10

Which of the following steps in the personal financial planning process comes last?

Accepted Answer

A)  Implement. 
B)  Monitor and review. 
C)  Compile and analyze data. 
D)  Establish scope of activity. 
E)  Develop solutions and present the plan. 
A)  Implement. 
B)  Monitor and review. 
C)  Compile and analyze data. 
D)  Establish scope of activity. 
E)  Develop solutions and present the plan.

Question 11

Risk management is best defined as:

Accepted Answer

A)  The uncertainty of outcomes. 
B)  The process of controlling the level of household risk. 
C)  The activity of minimizing household risk. 
D)  The risk of minimizing the household's activity. 
E)  The outcome of uncertainty. 
A)  The uncertainty of outcomes. 
B)  The process of controlling the level of household risk. 
C)  The activity of minimizing household risk. 
D)  The risk of minimizing the household's activity. 
E)  The outcome of uncertainty.

Question 12

What is the objective of financial integration?

Accepted Answer

A)  To look at how actions in one part of personal financial planning can affect other areas. 
B)  To use corporate financial managerial techniques in personal financial planning. 
C)  To place cash flow into assets designed to provide future funds for consumption. 
D)  To look at the functioning of the entire economy or a major section of it. 
E)  To reduce risk in a tax efficient manner. 
A)  To look at how actions in one part of personal financial planning can affect other areas. 
B)  To use corporate financial managerial techniques in personal financial planning. 
C)  To place cash flow into assets designed to provide future funds for consumption. 
D)  To look at the functioning of the entire economy or a major section of it. 
E)  To reduce risk in a tax efficient manner.

Question 13

Which of the following designations does not have a broad educational requirement in financial planning?

Accepted Answer

A)  Chartered Financial Consultant (ChF
C)  
B)  Personal Financial Specialist (PFS) 
C)  Chartered Financial Analyst (CF
A)  
D)  Certified Financial Planner (CFP) 
E)  National Association of Personal Financial Advisors (NAPF
A)  Registered Financial Advisor 
A)  Chartered Financial Consultant (ChF
C)  
B)  Personal Financial Specialist (PFS) 
C)  Chartered Financial Analyst (CF
A)  
D)  Certified Financial Planner (CFP) 
E)  National Association of Personal Financial Advisors (NAPF
A)  Registered Financial Advisor

Question 14

Which of the following is not a step in the personal financial planning decision making process?

Accepted Answer

A)  Establish the scope of the activity 
B)  Identify and report tax evasion to the authorities 
C)  Gather data and identify goals 
D)  Compile and analyze the data 
E)  All of the above are steps in the personal financial planning decision making process 
A)  Establish the scope of the activity 
B)  Identify and report tax evasion to the authorities 
C)  Gather data and identify goals 
D)  Compile and analyze the data 
E)  All of the above are steps in the personal financial planning decision making process

Question 15

Market structure is the term used to describe:

Accepted Answer

A)  The study of how people develop the cash flows necessary to support their operations and provide for their well-being. 
B)  Places where tangible goods and financial instruments like stocks and bonds are bought and sold. 
C)  A structure through which you can establish and integrate all of your goals and needs. 
D)  The economic operations of the business, the government, and the household that facilitate the purchase and sale of items. 
E)  None of the above. 
A)  The study of how people develop the cash flows necessary to support their operations and provide for their well-being. 
B)  Places where tangible goods and financial instruments like stocks and bonds are bought and sold. 
C)  A structure through which you can establish and integrate all of your goals and needs. 
D)  The economic operations of the business, the government, and the household that facilitate the purchase and sale of items. 
E)  None of the above.

Question 16

Which of the following issues can be categorized as a consumption and savings issue?

Accepted Answer

A)  The need to resolve a debt problem. 
B)  The desire to improve investment returns. 
C)  Discomfort with the current risk profile. 
D)  All of the above. 
E)  None of the above. 
A)  The need to resolve a debt problem. 
B)  The desire to improve investment returns. 
C)  Discomfort with the current risk profile. 
D)  All of the above. 
E)  None of the above.

Question 17

The buying and selling of tangible goods and financial instruments is a feature of:

Accepted Answer

A)  a market 
B)  an investment 
C)  a household 
D)  a market structure 
E)  none of the above 
A)  a market 
B)  an investment 
C)  a household 
D)  a market structure 
E)  none of the above

Question 18

In practice, most clients ask their personal financial planner to:

Accepted Answer

A)  Provide free consultation 
B)  Provide assistance with a specific problem 
C)  Recommend a lawyer or accountant 
D)  Provide tax advice 
E)  Provide a comprehensive financial plan 
A)  Provide free consultation 
B)  Provide assistance with a specific problem 
C)  Recommend a lawyer or accountant 
D)  Provide tax advice 
E)  Provide a comprehensive financial plan

Question 19

Which of the following best defines personal finance?

Accepted Answer

A)  The study of how people minimize risk for a given level of return 
B)  The study of how people maximize return for a given level of risk 
C)  The study of how people develop the cash flows necessary to support their operations and provide for their well-being 
D)  The study of how ethics should influence financial management decisions 
E)  The study of how people maximize risk for a given level of return 
A)  The study of how people minimize risk for a given level of return 
B)  The study of how people maximize return for a given level of risk 
C)  The study of how people develop the cash flows necessary to support their operations and provide for their well-being 
D)  The study of how ethics should influence financial management decisions 
E)  The study of how people maximize risk for a given level of return

Question 20

A financial planner establishes the scope of the activity during the personal financial planning process through:

Accepted Answer

A)  Determining the number of people in the household. 
B)  Defining the specific financial planning services that will be provided. 
C)  Determining the cash inflow to the household. 
D)  Determining the number of years until the client expects to retire. 
E)  None of the above. 
A)  Determining the number of people in the household. 
B)  Defining the specific financial planning services that will be provided. 
C)  Determining the cash inflow to the household. 
D)  Determining the number of years until the client expects to retire. 
E)  None of the above.

During the personal financial planning process, a financial planner will not gather data related to:

Capital is best defined as:

Which of the following statements about personal financial planning is inaccurate?

Planning for yourself and others while you are alive, and for current and former members of your household and other people or institutions upon your death, is designated:

Which of the following is not an example of a service that financial planners typically provide?

Why do the disciplines of psychology and sociology have a role in the practice of personal financial planning?

Employee benefits are best defined as:

Personal financial planning must satisfy four broad categories of personal-finance decisions: consumption and savings, investments, financing, and risk management. Into which category does each of the following five examples belong?

Which of the following are not considered part of the financial plan?

Which of the following steps in the personal financial planning process comes last?

Risk management is best defined as:

What is the objective of financial integration?

Which of the following designations does not have a broad educational requirement in financial planning?

Which of the following is not a step in the personal financial planning decision making process?

Market structure is the term used to describe:

Which of the following issues can be categorized as a consumption and savings issue?

The buying and selling of tangible goods and financial instruments is a feature of:

In practice, most clients ask their personal financial planner to:

Which of the following best defines personal finance?

A financial planner establishes the scope of the activity during the personal financial planning process through:

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

Completing the Process

Filters

Exam 1: Introduction to PFP

During the personal financial planning process, a financial planner will not gather data related to:

Capital is best defined as:

Which of the following statements about personal financial planning is inaccurate?

Planning for yourself and others while you are alive, and for current and former members of your household and other people or institutions upon your death, is designated:

Which of the following is not an example of a service that financial planners typically provide?

Why do the disciplines of psychology and sociology have a role in the practice of personal financial planning?

Employee benefits are best defined as:

Personal financial planning must satisfy four broad categories of personal-finance decisions: consumption and savings, investments, financing, and risk management. Into which category does each of the following five examples belong?

Which of the following are not considered part of the financial plan?

Which of the following steps in the personal financial planning process comes last?

Risk management is best defined as:

What is the objective of financial integration?

Which of the following designations does not have a broad educational requirement in financial planning?

Which of the following is not a step in the personal financial planning decision making process?

Market structure is the term used to describe:

Which of the following issues can be categorized as a consumption and savings issue?

The buying and selling of tangible goods and financial instruments is a feature of:

In practice, most clients ask their personal financial planner to:

Which of the following best defines personal finance?

A financial planner establishes the scope of the activity during the personal financial planning process through:

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

Completing the Process

Filters