FP511 Practice Exam with correct detailed
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answers
Which |of |the |following |activities |would |be |appropriate |if |you |were |establishing |and |defining |
the |client-planner |relationship |or |gathering |information |necessary |to |fulfill |the |engagement?
1 |Collecting |personal |financial |information
2 |Inquiring |about |the |number |of |dependents
3 |Inquiring |about |the |age |or |dates |of |birth |of |dependents
4 |Determining |which |stocks |to |purchase |for |the |client's |investment |portfolio |- |correct |answer |
1-3
Establishing |and |defining |the |client-planner |relationship |does |not |include |determining |which |
stocks |or |investments |to |purchase. |This |occurs |in |the |fourth |phase |of |the |financial |planning |
process, |developing |the |recommendations.
Which |of |the |following |activities |would |be |appropriate |if |you |were |establishing |and |defining |
the |client-planner |relationship |or |gathering |information |necessary |to |fulfill |the |engagement?
1 |Collecting |personal |financial |information
2 |Inquiring |about |the |number |of |dependents
3 |Inquiring |about |the |age |or |dates |of |birth |of |dependents
4 |Determining |which |stocks |to |purchase |for |the |client's |investment |portfolio |- |correct |answer |
1-3
Establishing |and |defining |the |client-planner |relationship |does |not |include |determining |which |
stocks |or |investments |to |purchase. |This |occurs |in |the |fourth |phase |of |the |financial |planning |
process, |developing |the |recommendations.
Which |of |the |following |CFP® |certificants |would |likely |be |considered |to |be |engaged |in |financial |
planning |or |the |material |elements |of |financial |planning?
,1 |Lance, |who |reviews |a |life |insurance |sales |brochure |with |his |client, |Arthur, |and |completes |a |
variable |life |insurance |application
2 |Nadia, |who |conducts |comprehensive |data |gathering |regarding |Jason's |investments, |life |
insurance, |retirement |plans, |wills, |and |trusts |and |makes |recommendations |for |him |- |correct |
answer |2
Because |Nadia's |services |involve |several |of |the |financial |planning |subject |areas |and |she |is |
involved |in |the |elements |of |financial |planning, |she |is |likely |providing |financial |planning. |
Lance's |service |to |Arthur |is |limited, |and |the |engagement |would |likely |not |be |considered |
financial |planning.
Which |of |the |following |CFP® |certificants |would |likely |be |considered |to |be |engaged |in |financial |
planning |or |the |material |elements |of |financial |planning?
1 |Lance, |who |reviews |a |life |insurance |sales |brochure |with |his |client, |Arthur, |and |completes |a |
variable |life |insurance |application
2 |Nadia, |who |conducts |comprehensive |data |gathering |regarding |Jason's |investments, |life |
insurance, |retirement |plans, |wills, |and |trusts |and |makes |recommendations |for |him |- |correct |
answer |2
Because |Nadia's |services |involve |several |of |the |financial |planning |subject |areas |and |she |is |
involved |in |the |elements |of |financial |planning, |she |is |likely |providing |financial |planning. |
Lance's |service |to |Arthur |is |limited, |and |the |engagement |would |likely |not |be |considered |
financial |planning.
According |to |CFP |Board |Code |of |Ethics, |Connor, |a |CFP® |professional, |is |responsible |for |which |
of |the |following?
1 |Acting |in |the |client's |best |interests
2 |Avoiding |or |disclosing |and |managing |conflicts |of |interest
3 |Acting |with |honesty, |integrity, |competence, |and |diligence
4 |Maintaining |the |confidentiality |and |protect |the |privacy |of |client |information |- |correct |
answer |All
,CFP® |professional |must
Act |with |honesty, |integrity, |competence, |and |diligence.
Act |in |the |client's |best |interests.
Exercise |due |care.
Avoid |or |disclose |and |manage |conflicts |of |interest.
Maintain |the |confidentiality |and |protect |the |privacy |of |client |information.
Act |in |a |manner |that |reflects |positively |on |the |financial |planning |profession |and |CFP® |
certification.
According |to |CFP |Board |Code |of |Ethics, |Connor, |a |CFP® |professional, |is |responsible |for |which |
of |the |following?
1 |Acting |in |the |client's |best |interests
2 |Avoiding |or |disclosing |and |managing |conflicts |of |interest
3 |Acting |with |honesty, |integrity, |competence, |and |diligence
4 |Maintaining |the |confidentiality |and |protect |the |privacy |of |client |information |- |correct |
answer |All
CFP® |professional |must
Act |with |honesty, |integrity, |competence, |and |diligence.
Act |in |the |client's |best |interests.
Exercise |due |care.
Avoid |or |disclose |and |manage |conflicts |of |interest.
Maintain |the |confidentiality |and |protect |the |privacy |of |client |information.
Act |in |a |manner |that |reflects |positively |on |the |financial |planning |profession |and |CFP® |
certification.
Amanda, |a |CFP® |professional, |is |enjoying |an |afternoon |at |her |son's |school |playground |when |
she |is |approached |by |Tracy, |a |fellow |parent |and |teacher |at |a |local |elementary |school. |Their |
conversation |covers |specifics |about |Tracy's |personal |and |financial |situation, |with |emphasis |on |
, a |recommended |investment |strategy |for |her |403(b) |account. |Amanda |is |aware |that |she |is |
providing |Financial |Advice |to |Tracy. |Identify |the |correct |application |of |rules |from |the |Code |and
|Standards |based |on |Amanda |and |Tracy's |interaction. |- |correct |answer |Although |only |Financial |
Advice |has |been |determined, |Amanda |must |uphold |her |Fiduciary |Duty |and |must |follow |the |
Code |of |Ethics.
As |a |CFP® |professional, |Amanda |is |obligated |to |uphold |the |Code |of |Ethics. |In |addition, |since |
Financial |Advice |is |occurring, |Amanda |must |act |as |a |Fiduciary, |in |the |best |interest |of |Tracy. |
The |introduction |of |the |Code |and |Standards |specifically |states |"The |Code |of |Ethics |applies |at |
all |times, |and |sets |forth |principles |that |guide |the |behavior |of |CFP® |professionals, |with |
elaboration |provided |in |the |Standards."
Amanda, |a |CFP® |professional, |is |enjoying |an |afternoon |at |her |son's |school |playground |when |
she |is |approached |by |Tracy, |a |fellow |parent |and |teacher |at |a |local |elementary |school. |Their |
conversation |covers |specifics |about |Tracy's |personal |and |financial |situation, |with |emphasis |on |
a |recommended |investment |strategy |for |her |403(b) |account. |Amanda |is |aware |that |she |is |
providing |Financial |Advice |to |Tracy. |Identify |the |correct |application |of |rules |from |the |Code |and
|Standards |based |on |Amanda |and |Tracy's |interaction. |- |correct |answer |Although |only |Financial |
Advice |has |been |determined, |Amanda |must |uphold |her |Fiduciary |Duty |and |must |follow |the |
Code |of |Ethics.
As |a |CFP® |professional, |Amanda |is |obligated |to |uphold |the |Code |of |Ethics. |In |addition, |since |
Financial |Advice |is |occurring, |Amanda |must |act |as |a |Fiduciary, |in |the |best |interest |of |Tracy. |
The |introduction |of |the |Code |and |Standards |specifically |states |"The |Code |of |Ethics |applies |at |
all |times, |and |sets |forth |principles |that |guide |the |behavior |of |CFP® |professionals, |with |
elaboration |provided |in |the |Standards."
Bill |and |Sophia |have |recently |retired |and |want |to |travel |to |Europe |and |then |volunteer |for |local
|mission |work. |They |would |also |like |to |meet |with |Humphrey, |their |financial |planner, |to |discuss |
charitable |contributions |they |would |like |to |make |to |these |local |missions. |Humphrey |should |
determine |Bill |and |Sophia's |life |cycle |phase |to |be |- |correct |answer |the |distribution |phase.
| | | | | |
answers
Which |of |the |following |activities |would |be |appropriate |if |you |were |establishing |and |defining |
the |client-planner |relationship |or |gathering |information |necessary |to |fulfill |the |engagement?
1 |Collecting |personal |financial |information
2 |Inquiring |about |the |number |of |dependents
3 |Inquiring |about |the |age |or |dates |of |birth |of |dependents
4 |Determining |which |stocks |to |purchase |for |the |client's |investment |portfolio |- |correct |answer |
1-3
Establishing |and |defining |the |client-planner |relationship |does |not |include |determining |which |
stocks |or |investments |to |purchase. |This |occurs |in |the |fourth |phase |of |the |financial |planning |
process, |developing |the |recommendations.
Which |of |the |following |activities |would |be |appropriate |if |you |were |establishing |and |defining |
the |client-planner |relationship |or |gathering |information |necessary |to |fulfill |the |engagement?
1 |Collecting |personal |financial |information
2 |Inquiring |about |the |number |of |dependents
3 |Inquiring |about |the |age |or |dates |of |birth |of |dependents
4 |Determining |which |stocks |to |purchase |for |the |client's |investment |portfolio |- |correct |answer |
1-3
Establishing |and |defining |the |client-planner |relationship |does |not |include |determining |which |
stocks |or |investments |to |purchase. |This |occurs |in |the |fourth |phase |of |the |financial |planning |
process, |developing |the |recommendations.
Which |of |the |following |CFP® |certificants |would |likely |be |considered |to |be |engaged |in |financial |
planning |or |the |material |elements |of |financial |planning?
,1 |Lance, |who |reviews |a |life |insurance |sales |brochure |with |his |client, |Arthur, |and |completes |a |
variable |life |insurance |application
2 |Nadia, |who |conducts |comprehensive |data |gathering |regarding |Jason's |investments, |life |
insurance, |retirement |plans, |wills, |and |trusts |and |makes |recommendations |for |him |- |correct |
answer |2
Because |Nadia's |services |involve |several |of |the |financial |planning |subject |areas |and |she |is |
involved |in |the |elements |of |financial |planning, |she |is |likely |providing |financial |planning. |
Lance's |service |to |Arthur |is |limited, |and |the |engagement |would |likely |not |be |considered |
financial |planning.
Which |of |the |following |CFP® |certificants |would |likely |be |considered |to |be |engaged |in |financial |
planning |or |the |material |elements |of |financial |planning?
1 |Lance, |who |reviews |a |life |insurance |sales |brochure |with |his |client, |Arthur, |and |completes |a |
variable |life |insurance |application
2 |Nadia, |who |conducts |comprehensive |data |gathering |regarding |Jason's |investments, |life |
insurance, |retirement |plans, |wills, |and |trusts |and |makes |recommendations |for |him |- |correct |
answer |2
Because |Nadia's |services |involve |several |of |the |financial |planning |subject |areas |and |she |is |
involved |in |the |elements |of |financial |planning, |she |is |likely |providing |financial |planning. |
Lance's |service |to |Arthur |is |limited, |and |the |engagement |would |likely |not |be |considered |
financial |planning.
According |to |CFP |Board |Code |of |Ethics, |Connor, |a |CFP® |professional, |is |responsible |for |which |
of |the |following?
1 |Acting |in |the |client's |best |interests
2 |Avoiding |or |disclosing |and |managing |conflicts |of |interest
3 |Acting |with |honesty, |integrity, |competence, |and |diligence
4 |Maintaining |the |confidentiality |and |protect |the |privacy |of |client |information |- |correct |
answer |All
,CFP® |professional |must
Act |with |honesty, |integrity, |competence, |and |diligence.
Act |in |the |client's |best |interests.
Exercise |due |care.
Avoid |or |disclose |and |manage |conflicts |of |interest.
Maintain |the |confidentiality |and |protect |the |privacy |of |client |information.
Act |in |a |manner |that |reflects |positively |on |the |financial |planning |profession |and |CFP® |
certification.
According |to |CFP |Board |Code |of |Ethics, |Connor, |a |CFP® |professional, |is |responsible |for |which |
of |the |following?
1 |Acting |in |the |client's |best |interests
2 |Avoiding |or |disclosing |and |managing |conflicts |of |interest
3 |Acting |with |honesty, |integrity, |competence, |and |diligence
4 |Maintaining |the |confidentiality |and |protect |the |privacy |of |client |information |- |correct |
answer |All
CFP® |professional |must
Act |with |honesty, |integrity, |competence, |and |diligence.
Act |in |the |client's |best |interests.
Exercise |due |care.
Avoid |or |disclose |and |manage |conflicts |of |interest.
Maintain |the |confidentiality |and |protect |the |privacy |of |client |information.
Act |in |a |manner |that |reflects |positively |on |the |financial |planning |profession |and |CFP® |
certification.
Amanda, |a |CFP® |professional, |is |enjoying |an |afternoon |at |her |son's |school |playground |when |
she |is |approached |by |Tracy, |a |fellow |parent |and |teacher |at |a |local |elementary |school. |Their |
conversation |covers |specifics |about |Tracy's |personal |and |financial |situation, |with |emphasis |on |
, a |recommended |investment |strategy |for |her |403(b) |account. |Amanda |is |aware |that |she |is |
providing |Financial |Advice |to |Tracy. |Identify |the |correct |application |of |rules |from |the |Code |and
|Standards |based |on |Amanda |and |Tracy's |interaction. |- |correct |answer |Although |only |Financial |
Advice |has |been |determined, |Amanda |must |uphold |her |Fiduciary |Duty |and |must |follow |the |
Code |of |Ethics.
As |a |CFP® |professional, |Amanda |is |obligated |to |uphold |the |Code |of |Ethics. |In |addition, |since |
Financial |Advice |is |occurring, |Amanda |must |act |as |a |Fiduciary, |in |the |best |interest |of |Tracy. |
The |introduction |of |the |Code |and |Standards |specifically |states |"The |Code |of |Ethics |applies |at |
all |times, |and |sets |forth |principles |that |guide |the |behavior |of |CFP® |professionals, |with |
elaboration |provided |in |the |Standards."
Amanda, |a |CFP® |professional, |is |enjoying |an |afternoon |at |her |son's |school |playground |when |
she |is |approached |by |Tracy, |a |fellow |parent |and |teacher |at |a |local |elementary |school. |Their |
conversation |covers |specifics |about |Tracy's |personal |and |financial |situation, |with |emphasis |on |
a |recommended |investment |strategy |for |her |403(b) |account. |Amanda |is |aware |that |she |is |
providing |Financial |Advice |to |Tracy. |Identify |the |correct |application |of |rules |from |the |Code |and
|Standards |based |on |Amanda |and |Tracy's |interaction. |- |correct |answer |Although |only |Financial |
Advice |has |been |determined, |Amanda |must |uphold |her |Fiduciary |Duty |and |must |follow |the |
Code |of |Ethics.
As |a |CFP® |professional, |Amanda |is |obligated |to |uphold |the |Code |of |Ethics. |In |addition, |since |
Financial |Advice |is |occurring, |Amanda |must |act |as |a |Fiduciary, |in |the |best |interest |of |Tracy. |
The |introduction |of |the |Code |and |Standards |specifically |states |"The |Code |of |Ethics |applies |at |
all |times, |and |sets |forth |principles |that |guide |the |behavior |of |CFP® |professionals, |with |
elaboration |provided |in |the |Standards."
Bill |and |Sophia |have |recently |retired |and |want |to |travel |to |Europe |and |then |volunteer |for |local
|mission |work. |They |would |also |like |to |meet |with |Humphrey, |their |financial |planner, |to |discuss |
charitable |contributions |they |would |like |to |make |to |these |local |missions. |Humphrey |should |
determine |Bill |and |Sophia's |life |cycle |phase |to |be |- |correct |answer |the |distribution |phase.
