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FP1 / FULL PRACTICE EXAM LATEST QUESTIONS WITH COMPLETE SOLUTIONS!!
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FP1 / FULL PRACTICE EXAM LATEST QUESTIONS WITH COMPLETE SOLUTIONS!!
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Name: Score:80 Multiple choice questions
Term 1 of 80
Select the type of insurance that can be extended, at the option of the policyholder, at the end of
the term without medical evidence of insurability.
Level term insurance.
Decreasing term insurance.
Convertible term insurance.
Renewable term insurance.
Term 2 of 80
Jamal is a member of a career-average, defined-benefit pension plan with benefits calculated at
2% of earnings per year of service. He joined the plan 5 years before retiring. At the time he
joined the plan, his salary was $55,000 and his income increased by $2,000 each year. Jamal
joined the plan immediately upon being hired. Calculate Jamal's annual pension upon retirement.
$4,000
$4,640
$5,000
$5,900
,Term 3 of 80
Identify the questions that a cash flow statement answers.
[1] How much money is coming in?
[2] Where is the money going?
[3] Who is making the money?
I only.
I and II only.
II and III only.
I and III only.
Term 4 of 80
Calculate this household's Gross Debt Service Ratio (GDSR) given the following information.
Annual household income (gross amount): $100,000
Monthly mortgage payments: $2,000
Annual property taxes: $5,000
Annual heating costs: $1,440
Total credit card balances outstanding: $20,000.
8%.
30%.
20%.
50%
,Term 5 of 80
Which statement correctly captures the process of determining an individual's Registered
Retirement Savings Plan (RRSP) contribution limit for the current year (where PA represents
Pension Adjustment)?
The lesser of 18% of the current year's earned income and the RRSP dollar limit for the
current year.
The lesser of 18% of the current year's earned income and the RRSP dollar limit for the
current year plus the previous year's PA plus the taxpayer's unused RRSP contribution room
at the end of the immediately preceding taxation year.
The lesser of 18% of the previous year's earned income and the RRSP dollar limit for the
current year minus the current year's PA.
The lesser of 18% of the previous year's earned income and the RRSP dollar limit for the
current year minus the previous year's PA plus the taxpayer's unused RRSP contribution
room at the end of the immediately preceding taxation year.
Term 6 of 80
By and large, what statement below is true in regards to the current landscape in Canada for
financial advisors?
There has been a dramatic shift to fee based advice as it's perceived as unbiased.
The role has shifted to a client driven model where building a strong client relationship is
key.
The business is now product driven where it's all about selling higher commissioned
products.
The industry is focusing on reducing costs and finding the most inexpensive investments for
clients.
, Term 7 of 80
You are reviewing a client's investment portfolio and are pleased to see that all of her GICs were
purchased before a recent substantial fall in interest rates. You note that she has a mortgage on
her home, a substantial emergency fund, and an up-to-date insurance policy. Choose the action
that you should recommend at your review tomorrow.
Cash in GICs.
Eliminate the emergency fund.
Refinance the mortgage.
Review the insurance policy.
Term 8 of 80
On which of the basic sources of revenue does Canada rely?
[1] Income
[2] Transfers
[3] Wealth
I only.
I and II only.
II and III only.
I and III only.
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