Quiz-summary
0 of 10 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Information
Free Practice Questions
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 10 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- Answered
- Review
-
Question 1 of 10
1. Question
Identify the types of agent authorities:
I. Fiduciary Authority
II. Express Authority
III. Implied Authority
IV. Explicit AuthorityCorrect
There are a few kinds of agent authority that determine the degree to which an agent can bind a principal in a contract: express authority is granted for a specific purpose; implied authority is granted to carry out any acts that are relevant to accomplishing a particular goal; and apparent authority is granted to perform any act which the principal could reasonably want performed.
Incorrect
There are a few kinds of agent authority that determine the degree to which an agent can bind a principal in a contract: express authority is granted for a specific purpose; implied authority is granted to carry out any acts that are relevant to accomplishing a particular goal; and apparent authority is granted to perform any act which the principal could reasonably want performed.
-
Question 2 of 10
2. Question
Which of the following can be a Negotiable Instrument?
I. Promissory Note
II. Written Document
III. Verbal Statement
IV. DraftCorrect
A negotiable instrument may be either a promissory note (a promise to pay) or a draft (a three-party promise to pay). A valid negotiable instrument is in writing and signed by the maker, includes an unconditional promise to pay, is payable at a definite time, and is payable to a certain party.
Incorrect
A negotiable instrument may be either a promissory note (a promise to pay) or a draft (a three-party promise to pay). A valid negotiable instrument is in writing and signed by the maker, includes an unconditional promise to pay, is payable at a definite time, and is payable to a certain party.
-
Question 3 of 10
3. Question
What are the goals of a Financial Planner?
I. To provide biased financial advice to the individuals
II. To provide a strategy to the clients for managing their immediate needs
III. To determine the best course of action for a particular client
IV. To provide organised financial advice to the individualsCorrect
A financial planner’s goal is simple: to provide sound, organized financial advice to individuals and their families. People can benefit from the services of a financial planner in several ways. Financial planners provide a coordinated strategy for managing the immediate and long-term needs of clients who may be too busy to stay informed on financial issues.
Incorrect
A financial planner’s goal is simple: to provide sound, organized financial advice to individuals and their families. People can benefit from the services of a financial planner in several ways. Financial planners provide a coordinated strategy for managing the immediate and long-term needs of clients who may be too busy to stay informed on financial issues.
-
Question 4 of 10
4. Question
What are the components of Financial Planning?
I. Insurance
II. Income tax planning
III. Savings
IV. Retirement PlanningCorrect
There are five major components of financial planning: insurance, investments, income tax planning, retirement planning, and estate planning.
Incorrect
There are five major components of financial planning: insurance, investments, income tax planning, retirement planning, and estate planning.
-
Question 5 of 10
5. Question
What all are covered in the first step of Financial Planning Process?
I. Building a relationship
II. Gathering all the necessary data to do the job effectively
III. Disclosing the rate of compensation
IV. Deciding the duration of the agreementCorrect
The first step in the financial planning process is to establish a client-planner relationship in which both parties state their expectations. The relationship must be based on a firm trust to be successful. The first part of building such a relationship is identifying what services need to be provided. Then, the financial planner should disclose his or her rate of compensation. Next, both the financial planner and the client should work together to outline the responsibilities that each party will bear in the relationship. After that, the two parties may decide on the duration of the agreement. Finally, the client and financial planner should provide any additional information necessary to adequately define or limit the work to come.
Incorrect
The first step in the financial planning process is to establish a client-planner relationship in which both parties state their expectations. The relationship must be based on a firm trust to be successful. The first part of building such a relationship is identifying what services need to be provided. Then, the financial planner should disclose his or her rate of compensation. Next, both the financial planner and the client should work together to outline the responsibilities that each party will bear in the relationship. After that, the two parties may decide on the duration of the agreement. Finally, the client and financial planner should provide any additional information necessary to adequately define or limit the work to come.
-
Question 6 of 10
6. Question
Identify the types of data to be gathered in Financial Planning Process:
I. Financial data
II. Void data
III. Qualitative data
IV. Quantitative dataCorrect
This means collecting both quantitative and qualitative data. Quantitative data assesses the client’s current financial situation and is found using a fact-finding questionnaire. Qualitative data, on the other hand, gives a more subjective picture of the client. Specifically, it tells the financial planner why the client has set his or her goals. Qualitative data is obtained during a goals (broad-based projections) and objectives (specific steps for reaching goals) interview.
Incorrect
This means collecting both quantitative and qualitative data. Quantitative data assesses the client’s current financial situation and is found using a fact-finding questionnaire. Qualitative data, on the other hand, gives a more subjective picture of the client. Specifically, it tells the financial planner why the client has set his or her goals. Qualitative data is obtained during a goals (broad-based projections) and objectives (specific steps for reaching goals) interview.
-
Question 7 of 10
7. Question
What are the responsibilities of the client in Financial Planning Process?
I. Making his objectives known
II. Being receptive to the financial plans offered by the planner
III. Preparing the financial plans
IV. Working to advance the agreed upon planCorrect
The client is responsible for making known his or her goals and objectives, for being receptive to creative financial plans, and for working to advance the agreed-upon plan. The other advisers that are brought in to assist in the financial planning process are responsible for fulfilling whatever their particular task may be as designated by the financial planner with the approval of the client.
Incorrect
The client is responsible for making known his or her goals and objectives, for being receptive to creative financial plans, and for working to advance the agreed-upon plan. The other advisers that are brought in to assist in the financial planning process are responsible for fulfilling whatever their particular task may be as designated by the financial planner with the approval of the client.
-
Question 8 of 10
8. Question
What are the responsibilities of the Financial Planner?
I. Preparing the financial plans
II. Analysing the financial circumstances
III. Implementing and monitoring the financial plan
IV. Being receptive to the clients financial planCorrect
The financial planner must evaluate the needs of the client, explain complicated financial concepts, analyze the financial circumstances of the client, prepare financial plans, clarify client goals, and, finally, implement and monitor the financial plan.
Incorrect
The financial planner must evaluate the needs of the client, explain complicated financial concepts, analyze the financial circumstances of the client, prepare financial plans, clarify client goals, and, finally, implement and monitor the financial plan.
-
Question 9 of 10
9. Question
What are the components of a balance sheet?
I. Assets
II. Income
III. Net Worth
IV. LiabilitiesCorrect
There are three categories on a balance sheet: assets, liabilities, and net worth.
Incorrect
There are three categories on a balance sheet: assets, liabilities, and net worth.
-
Question 10 of 10
10. Question
How is Net Worth calculated?
Correct
Net worth is total assets minus total liabilities. Net worth increases due to an appreciation in the value of assets, an increase in assets from retaining income, an increase in assets from gifts or inheritances, or a decrease in liabilities from forgiveness.
Incorrect
Net worth is total assets minus total liabilities. Net worth increases due to an appreciation in the value of assets, an increase in assets from retaining income, an increase in assets from gifts or inheritances, or a decrease in liabilities from forgiveness.