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CRPC PRACTICE EXAM|| CRPC ACTUAL EXAM ALL
QUESTIONS AND CORRECT ANSWERS ALREADY
GRADED A+|| LATEST AND COMPLETE VERSION
ALREADY GRADED A+|| BRAND NEW!!!
Assume a client and investment professional have worked together for several
years. Recently, the client's personal and financial circumstances have changed.
According to the course materials, what is the next asset management step that the
investment professional should take?
A)
make and implement recommendations
B)
gather data
C)
monitor performance
D)
analyze information - ANSWER: B
Which one of the following is not a key attribute of an investment policy?
A)
clearly defined
B)
realistic
C)
fluid
D)
long-term perspective - ANSWER: C
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All of these are examples of asset allocation strategies except
A)
tactical.
B)
core/satellite.
C)
strategic.
D)
alpha. - ANSWER: D
Assume the following asset classes have the correlations to long-term government
bonds shown below:
Treasury bills:.12Gold:-.25Large stocks:.22Small stocks:.17
Which one of the following best exemplifies the impact of diversification on long-
term government bonds?
A)
Large stocks provide more diversification than small stocks.
B)
Small stocks provide more diversification than Treasury bills.
C)
Gold provides more diversification than large stocks.
D)
Treasury bills provide more diversification than gold. - ANSWER: C
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This year, your 63-year-old client had $17,025 of earned income and $30,000 of
investment income. He was also drawing Social Security benefits. Which one of
the following correctly describes the impact on his Social Security benefits?
A)
He loses $1 of benefits for every $3 above the "allowable limit."
B)
He loses $1 of benefits for every $1 above the "allowable limit."
C)
There is no reduction to his benefits.
D)
He loses $1 of benefits for every $2 above the "allowable limit." - ANSWER: C
Which one of the following is a correct statement about the amount of Social
Security retirement benefits available when a fully insured worker's retirement
benefit begins at full retirement age (FRA)?
A)
If the spouse is at or above his or her full retirement age when commencing Social
Security benefits, the spouse will receive at least 50% of the worker's PIA.
B)
The worker will receive 80% of his or her primary insurance amount (PIA).
C)
A 63-year-old spouse of the retired worker will receive at least 50% of the worker's
PIA.
D)
If the spouse of the worker has attained FRA and is entitled to benefits on their
earning record, the benefit is the lesser of 100% of the spouse's own PIA or 50% of
the worker's PIA. - ANSWER: A
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Which one of the following is correct regarding most types of tax exempt interest
and the taxation of Social Security benefits?
A)
None of the tax-exempt interest is included in the computation of the taxation of
Social Security benefits.
B)
All of the tax-exempt interest is included in the computation of the taxation of
Social Security benefits.
C)
50% of the tax-exempt interest is included in the computation of the taxation of
Social Security benefits.
D)
85% of the tax-exempt interest is included in the computation of the taxation of
Social Security benefits. - ANSWER: B
Susan has reached full retirement age (FRA). She is trying to decide between
starting Social Security benefits of $1,000 per month now, or delaying receipt for
three years and using her savings to provide current income. By delaying three
years her benefit would increase to $1,240 per month. Ignoring the time value of
money and cost-of-living adjustments, use the break-even calculation to determine
how much longer Susan will need to live in order for delaying to "pay off."
A)
She should delay only if she expects to live beyond the next 15½ years or so.
B)
She should delay beyond FRA regardless of her life expectancy in order to
maximize her lifetime benefit.
C)
She should begin at FRA if she expects to live beyond the next three years.
D)
CRPC PRACTICE EXAM|| CRPC ACTUAL EXAM ALL
QUESTIONS AND CORRECT ANSWERS ALREADY
GRADED A+|| LATEST AND COMPLETE VERSION
ALREADY GRADED A+|| BRAND NEW!!!
Assume a client and investment professional have worked together for several
years. Recently, the client's personal and financial circumstances have changed.
According to the course materials, what is the next asset management step that the
investment professional should take?
A)
make and implement recommendations
B)
gather data
C)
monitor performance
D)
analyze information - ANSWER: B
Which one of the following is not a key attribute of an investment policy?
A)
clearly defined
B)
realistic
C)
fluid
D)
long-term perspective - ANSWER: C
,2|Pag e
All of these are examples of asset allocation strategies except
A)
tactical.
B)
core/satellite.
C)
strategic.
D)
alpha. - ANSWER: D
Assume the following asset classes have the correlations to long-term government
bonds shown below:
Treasury bills:.12Gold:-.25Large stocks:.22Small stocks:.17
Which one of the following best exemplifies the impact of diversification on long-
term government bonds?
A)
Large stocks provide more diversification than small stocks.
B)
Small stocks provide more diversification than Treasury bills.
C)
Gold provides more diversification than large stocks.
D)
Treasury bills provide more diversification than gold. - ANSWER: C
,3|Pag e
This year, your 63-year-old client had $17,025 of earned income and $30,000 of
investment income. He was also drawing Social Security benefits. Which one of
the following correctly describes the impact on his Social Security benefits?
A)
He loses $1 of benefits for every $3 above the "allowable limit."
B)
He loses $1 of benefits for every $1 above the "allowable limit."
C)
There is no reduction to his benefits.
D)
He loses $1 of benefits for every $2 above the "allowable limit." - ANSWER: C
Which one of the following is a correct statement about the amount of Social
Security retirement benefits available when a fully insured worker's retirement
benefit begins at full retirement age (FRA)?
A)
If the spouse is at or above his or her full retirement age when commencing Social
Security benefits, the spouse will receive at least 50% of the worker's PIA.
B)
The worker will receive 80% of his or her primary insurance amount (PIA).
C)
A 63-year-old spouse of the retired worker will receive at least 50% of the worker's
PIA.
D)
If the spouse of the worker has attained FRA and is entitled to benefits on their
earning record, the benefit is the lesser of 100% of the spouse's own PIA or 50% of
the worker's PIA. - ANSWER: A
, 4|Pag e
Which one of the following is correct regarding most types of tax exempt interest
and the taxation of Social Security benefits?
A)
None of the tax-exempt interest is included in the computation of the taxation of
Social Security benefits.
B)
All of the tax-exempt interest is included in the computation of the taxation of
Social Security benefits.
C)
50% of the tax-exempt interest is included in the computation of the taxation of
Social Security benefits.
D)
85% of the tax-exempt interest is included in the computation of the taxation of
Social Security benefits. - ANSWER: B
Susan has reached full retirement age (FRA). She is trying to decide between
starting Social Security benefits of $1,000 per month now, or delaying receipt for
three years and using her savings to provide current income. By delaying three
years her benefit would increase to $1,240 per month. Ignoring the time value of
money and cost-of-living adjustments, use the break-even calculation to determine
how much longer Susan will need to live in order for delaying to "pay off."
A)
She should delay only if she expects to live beyond the next 15½ years or so.
B)
She should delay beyond FRA regardless of her life expectancy in order to
maximize her lifetime benefit.
C)
She should begin at FRA if she expects to live beyond the next three years.
D)
