1. Financial advisor activities considered to be part of step 4 (develop and pre
ID: 2733070 • Letter: 1
Question
1. Financial advisor activities considered to be part of step 4 (develop and present a plan) in the financial planning process include all the following EXCEPT
A. obtaining the client's approval of the plan
B. presenting alternative plan strategies to the client
C. writing a report for the client that describes the plan
D. reviewing the plan to see that it is performing satisfactorily
2.All the following statements concerning the relationship between wealth and financial risk tolerance are correct EXCEPT
A. Absolute risk tolerance increases with wealth since the wealthy have more money to spend on everything.
B. People who earned their own wealth tend to be more risk tolerant than those who inherited their wealth from beloved relatives.
C. Relative risk tolerance increases with wealth if housing is included in the definition of wealth or classified as a risky asset.
D. People who acquired their wealth through a windfall are more apt to expose it to risk than those who worked hard for it.
3. The Free Application for Federal Student Aid form (FAFSA) is used as the basis for estimating the expected contribution from all the following EXCEPT
A. parents
B. student
C. family
D. grandparents
4. All the following individuals always have a fiduciary duty to the client EXCEPT
A. CFA® charterholder
B. registered investment adviser
C. CFP® Certificant
D. insurance agent
5.All the following statements concerning basic communication principles are correct EXCEPT
A. Communication is learned through experience.
B. The same word may have different meanings to different people.
C. Listening is a form of communication.
D. Communication occurs mainly through verbal discourse.
Explanation / Answer
Ans 1: C is corrrect ie.writing a report for the client that describes the plan
Ans2: D is correct ie People who acquired their wealth through a windfall are more apt to expose it to risk than those who worked hard for it.
Ans3: D is correct. Grand Parents.
Ans 4 : A is correct. CFA® charterholder
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