Matching questions
1-30 of 30
Click a definition to match it with a term
Which of the following are fiscal policy actions that may be taken to stimulate the
economy?
A. Increase tax credits
B. Buy government securities
C. Decrease government spending
D. Decrease rate paid on excess reserves
Give this one a try later!
A
Taxation is a fiscal policy tool. Increasing tax credits essentially lowers tax
liabilities. This is expected to have a positive impact on the economy.
Statement C is incorrect as it will have the opposite expected effect.
Statements B and D are monetary tools, not fiscal policy tools
,Hannah currently has $915,000 saved. She will retire in 10 years and wants to take
$80,000 income for 25 years at the beginning of each year. She also wishes to have
$1,000,000 35 years from now to leave to her heirs. What is the internal rate of return
needed to accomplish this?
5.99%
4.96%
3.13%
4.75%
Give this one a try later!
4.96%
The correct answer is B. Income needs to begin at the beginning of year 10,
make end of year 9 the last year of inactivity. The 1,000,000 is entered
separately as it is not part of the retirement income stream.
10BII and 10BII+ (zeros were truncated to speed up calculation)
915 +/-CF
0 CF
9 [OS] Nj [OS] means Orange Shift
80 Cf
25 [OS] Nj
1000 CF
[OS] IRR/YR
Which of the following statements is/are correct concerning the CFP Board's Code
and Standards?
I. If a CFP® Professional suspects illegal activity is occurring within their organization,
they have a duty to inform the appropriate regulatory authority.
II. A CFP® Professional must obtain sufficient quantitative and qualitative information
relative to the scope of the engagement before making recommendations to a client.
Only I is correct
, Only II is correct
Both I and II are correct
Neither I nor II is correct
Give this one a try later!
Only II
A CFP® professional must contact his or her immediate supervision if they
suspect illegal activity is occurring. They should only contact regulatory
authorities in the event that no correct action is taken after they discuss the
situation with their supervisor.
As a rule of thumb, it is best if consumer debt does not exceed:
A. 20% of net income.
B. 20% of gross income.
C. 3 to 6 months of expenses.
D. 36% of gross monthly income.
Give this one a try later!
A. 20% of net income
This is a rule of thumb, along with the others that recommend housing debt
be limited to 28% of gross income, and total debt not to exceed 36% of
gross income.
Which of the following statements regarding risk tolerance assessment is not correct?
A. If no evidence to the contrary is available, the planner should assume a client is risk
averse.
B. The process should be started by the planner engaging in a conversation about risk
tolerance with the client.
1-30 of 30
Click a definition to match it with a term
Which of the following are fiscal policy actions that may be taken to stimulate the
economy?
A. Increase tax credits
B. Buy government securities
C. Decrease government spending
D. Decrease rate paid on excess reserves
Give this one a try later!
A
Taxation is a fiscal policy tool. Increasing tax credits essentially lowers tax
liabilities. This is expected to have a positive impact on the economy.
Statement C is incorrect as it will have the opposite expected effect.
Statements B and D are monetary tools, not fiscal policy tools
,Hannah currently has $915,000 saved. She will retire in 10 years and wants to take
$80,000 income for 25 years at the beginning of each year. She also wishes to have
$1,000,000 35 years from now to leave to her heirs. What is the internal rate of return
needed to accomplish this?
5.99%
4.96%
3.13%
4.75%
Give this one a try later!
4.96%
The correct answer is B. Income needs to begin at the beginning of year 10,
make end of year 9 the last year of inactivity. The 1,000,000 is entered
separately as it is not part of the retirement income stream.
10BII and 10BII+ (zeros were truncated to speed up calculation)
915 +/-CF
0 CF
9 [OS] Nj [OS] means Orange Shift
80 Cf
25 [OS] Nj
1000 CF
[OS] IRR/YR
Which of the following statements is/are correct concerning the CFP Board's Code
and Standards?
I. If a CFP® Professional suspects illegal activity is occurring within their organization,
they have a duty to inform the appropriate regulatory authority.
II. A CFP® Professional must obtain sufficient quantitative and qualitative information
relative to the scope of the engagement before making recommendations to a client.
Only I is correct
, Only II is correct
Both I and II are correct
Neither I nor II is correct
Give this one a try later!
Only II
A CFP® professional must contact his or her immediate supervision if they
suspect illegal activity is occurring. They should only contact regulatory
authorities in the event that no correct action is taken after they discuss the
situation with their supervisor.
As a rule of thumb, it is best if consumer debt does not exceed:
A. 20% of net income.
B. 20% of gross income.
C. 3 to 6 months of expenses.
D. 36% of gross monthly income.
Give this one a try later!
A. 20% of net income
This is a rule of thumb, along with the others that recommend housing debt
be limited to 28% of gross income, and total debt not to exceed 36% of
gross income.
Which of the following statements regarding risk tolerance assessment is not correct?
A. If no evidence to the contrary is available, the planner should assume a client is risk
averse.
B. The process should be started by the planner engaging in a conversation about risk
tolerance with the client.
