CFP CERTIFIED FINANCIAL PLANNER
CERTIFICATION NEWEST ACTUAL
EXAM QUESTIONS AND DETAILED
CORRECT ANSWERS 2024 |
GUARANTEED PASS
John and Jane have a net worth of $20,000 and total
assets of $150,000. If their revolving credit and unpaid
bills total $8,000, how much are their total liabilities?
$122,000
$130,000
$138,000
$150,000 Correct Answer The Correct Answer is B.
A - L = Net Worth
150,000 - L = 20,000
L = 130,000
Which of the following is not necessary to identify the
client's life cycle position?
Attitudes (beliefs).
Marital Status.
Dependents.
Income Level.
Net Worth. Correct Answer The Correct Answer is A.
Age, marital status, dependents, income and net worth
determine a client's life cycle position.
,Jennifer has the transactions below, what is the combined
impact on her net worth when considering all of the
transactions?
She purchases $5,000 worth of a mutual fund with cash
from her savings account.
She spends $6,000 on a two-week vacation to Italy using
funds in her money market account.
She purchases $10,000 worth of furniture for her house
and uses her credit card to finance the purchase.
$21,000 decrease in net worth
$6,000 decrease in net worth
$15,000 increase in net worth
$6,000 increase in net worth Correct Answer The Correct
Answer is B.
- No change. Decrease in current assets of $5,000 and
increase in invested assets of $5,000
- Decrease of $6,000 in current assets
- No change. Personal use assets increases by $10,000
and current liabilities increase by $10,000
Trusts can be very beneficial in many financial planning
situations. Many trust benefits, such as asset protection
and control, are appropriate considerations for a family
with a special needs person. Which of the following types
of trusts would generally be used to protect an award from
winning a lawsuit or an inheritance on behalf of a special
needs child?
Family trust or third party trust
A trust under 42 U.S.C. Sec 1396p(d)(4)(A)
,A pooled trust
A qualified trust Correct Answer The Correct Answer is B.
A trust under 42 U.S.C. Sec. 1396p(d)(4)(A) can be used
to hold assets that are owned by the beneficiary, such as
from a lawsuit or an inheritance.
Gathering client data includes gathering which of the
following?
Bank statements
Tax returns
Beliefs, attitude and desires of the client
All of the above Correct Answer The Correct Answer is D.
Gathering client data includes both gathering the numbers,
but also a client's beliefs, attitude and desires to determine
if goals and objectives are reasonable or unreasonable.
Holly would like to plan for her daughter's college
education. She would like for her daughter, who was born
today, to attend college for 4 years, beginning at age 18.
Tuition is currently $10,000 per year and tuition inflation is
7%. Holly can earn an after-tax rate of return of 10%. How
much must Holly save at the end of each year, if she
wants to make the last payment at the beginning of her
daughter's first year of college?
$2,845.81
$3,345.31
$4,009.87
$4,900.78 Correct Answer The Correct Answer is A.
, Which of the following is not a primary responsibility of the
Federal Reserve (Fed)?
Maintain sustainable long-term economic growth.
Maintain fair practices between securities dealers.
Maintain price levels that are supported by economic
growth.
Maintain full employment. Correct Answer The Correct
Answer is B.
Choice B is the job of the SEC.
Ann recently purchased a house for $220,000. She made
a down payment of $20,000 and financed the balance
over 15 years at 6%. If Ann's first payment is due on
October 1st of the current year, how much of her current
year's payments will be applied to the outstanding
principal on the loan?
$2,989.67
$5,885.09
$3,288.63
$2,073.47 Correct Answer The Correct Answer is D.
Darrin and Kathi recently gave you the following financial
information.
Current Liabilities $6,921
Monthly Non-discretionary Expenses $4,693
Yearly Income $70,000
Annual Debt Expenses (excluding monthly housing costs)
$22,084
