Indispensable FPQP® Principles of Financial Planning Study
Assessment Guide Exam Questions with All Questions
Accurately Answered Updated 2025/2026
Asset categories that are appropriate for the client are determined in which one
of the following steps in the financial planning process?
Understanding the client's personal and financial circumstances
Analyzing the client's current course of action and potential alternate course(s) of
action
Developing the financial planning recommendations
Implementing the financial planning recommendations
Correct answer: Developing the financial planning recommendations
Generally, the three asset categories on a statement of financial position are:
Savings and checking accounts; stocks and bonds; use assets.
Cash/cash equivalents; invested assets; personal property.
Cash/cash equivalents; financial assets; use assets.
Cash/cash equivalents; invested assets; use assets.
Correct answer: cash/cash equivalents; invested assets; use assets.
,The ratio of annual debt repayments to gross income is known as the
Basic liquidity ratio.
Debt-to-assets ratio.
Back-end debt-to-income ratio.
Nonmortgage debt-to-income ratio.
Correct answer: back-end debt-to-income ratio.
One factor lenders use in evaluating a borrower is capital.
Capital is the
Net worth of the borrower.
Amount of the borrower’s income.
Assets pledged to secure the loan.
Honesty and reliability of the borrower.
Correct answer: net worth of the borrower.
Aimi invested $10,000 in a growth mutual fund five years ago. She earned an
average annual return of 9.5% on the fund during that period. How much is her
fund worth now?
$14,377
$15,742
$15,905
$16,105
Correct answer: $15,742
, Assume an annuity will make payments of $500 at the beginning of each month
for the next 20 years, starting today. Using a discount rate of 6%, what is the
present value of this annuity?
$68,820
$69,790
$70,139
$72,949
Correct answer: $70,139
Zack inherited XYZ stock from his dad when it was worth $12,324. He has held
onto the XYZ stock and seven years later it is now worth $33,645. What annual
rate of return has Zack earned on his XYZ stock?
14.53%
15.43%
16.06%
16.85%
Correct answer: 15.43%
Dave is taking out a 30-year mortgage loan of $200,000 at 6%. Payments are
due at the end of each month. How much is Dave's monthly mortgage payment?
$1,142.28
$1,193.14
$1,199.10
$1,210.82
Assessment Guide Exam Questions with All Questions
Accurately Answered Updated 2025/2026
Asset categories that are appropriate for the client are determined in which one
of the following steps in the financial planning process?
Understanding the client's personal and financial circumstances
Analyzing the client's current course of action and potential alternate course(s) of
action
Developing the financial planning recommendations
Implementing the financial planning recommendations
Correct answer: Developing the financial planning recommendations
Generally, the three asset categories on a statement of financial position are:
Savings and checking accounts; stocks and bonds; use assets.
Cash/cash equivalents; invested assets; personal property.
Cash/cash equivalents; financial assets; use assets.
Cash/cash equivalents; invested assets; use assets.
Correct answer: cash/cash equivalents; invested assets; use assets.
,The ratio of annual debt repayments to gross income is known as the
Basic liquidity ratio.
Debt-to-assets ratio.
Back-end debt-to-income ratio.
Nonmortgage debt-to-income ratio.
Correct answer: back-end debt-to-income ratio.
One factor lenders use in evaluating a borrower is capital.
Capital is the
Net worth of the borrower.
Amount of the borrower’s income.
Assets pledged to secure the loan.
Honesty and reliability of the borrower.
Correct answer: net worth of the borrower.
Aimi invested $10,000 in a growth mutual fund five years ago. She earned an
average annual return of 9.5% on the fund during that period. How much is her
fund worth now?
$14,377
$15,742
$15,905
$16,105
Correct answer: $15,742
, Assume an annuity will make payments of $500 at the beginning of each month
for the next 20 years, starting today. Using a discount rate of 6%, what is the
present value of this annuity?
$68,820
$69,790
$70,139
$72,949
Correct answer: $70,139
Zack inherited XYZ stock from his dad when it was worth $12,324. He has held
onto the XYZ stock and seven years later it is now worth $33,645. What annual
rate of return has Zack earned on his XYZ stock?
14.53%
15.43%
16.06%
16.85%
Correct answer: 15.43%
Dave is taking out a 30-year mortgage loan of $200,000 at 6%. Payments are
due at the end of each month. How much is Dave's monthly mortgage payment?
$1,142.28
$1,193.14
$1,199.10
$1,210.82
