CFP GP

Question 1

Payment History

Answer 1

35%

Question 2

Amounts owed

Answer 2

30%

Question 3

Length of credit history

Answer 3

15%

Question 4

New credit

Answer 4

10%

Question 5

Credit mix

Answer 5

10%

Question 6

FICO Poor

Answer 6

Under 580

Question 7

FICO Fair

Answer 7

580-670

Question 8

FICO Good

Answer 8

670-740

Question 9

FICO Very Good

Answer 9

740-800

Question 10

FICO Exceptional

Answer 10

800+

Question 11

Expansion

Answer 11

Increasing GDP, decreasing unemployment

Question 12

Contraction

Answer 12

Decreasing GDP, increasing unemployment

Question 13

Peak

Answer 13

High GDP and very low unemployment

Question 14

Trough

Answer 14

Very low (or negative) GDP and high, widespread unemployment

Question 15

Early Expansion

Answer 15

Activity rebounds, credit begins to grow, profits grow rapidly, policy still stimulative, inventories low, sales improve

Question 16

Mid Expansion

Answer 16

Growth peaking, credit growth strong, profit growth peaks, policy neutral, inventories & sales grow, equillibrium reached

Question 17

Late Expansion

Answer 17

Growth moderating, credit tightens, earnings under pressure, policy contractionary, inventories grow & sales growth falls

Question 18

Contraction

Answer 18

Falling activity, credit dries up, profits decline, policy eases, inventories & sales fall

Question 19

Money Market

Answer 19

Short-term debt instruments

Question 20

Capital Market

Answer 20

Long-term debt and equity; stock market, bond market, commodities, foreign exchange

Question 21

Asset Protection Allowance

Answer 21

only available to parents

Question 22

Income protection allowance

Answer 22

available for students and parents

Question 23

Federal Supplemental Educational Opportunity Grant (FSEOG)

Answer 23

Need based, available to undergraduate students, based on the availability of funds at that school

Question 23

Federal Supplemental Educational Opportunity Grant (FSEOG)

Answer 23

Need based, available to undergraduate students, based on the availability of funds at that school

Question 24

Grace period on life insurance premiums

Answer 24

31 days

Question 25

H0-5 Policy coverage for contents

Answer 25

Open contents, coverage at a limit of 50% of the Part A - Dwelling coverage limit

Question 26

Periodic withdrawals from a deferred annuity held until age 59/5

Answer 26

LIFO basis

Question 27

Dividends on participating life insurance polciies may be:

Answer 27

taken in cash used to pay a portion of the next premium left to accumulate used to purchase a single-premium, paid-up addition used to purchase one-year term insurance (fifth dividend option)

Question 28

Universal Life Option A

Answer 28

Death benefit remains level

Question 29

Universal Life Option B

Answer 29

death benefit is face amount plus cash value

Question 30

HSA Non-qualified distributions

Answer 30

taxes and 20% PENALTY

Question 31

Securities Act of 1933

Answer 31

Handles IPOs and Primary Markets

Question 32

Securities Act of 1934

Answer 32

Regulates the secondary market; created the OTC Secondary markets = organized exchange (NYSE) or OTC (NASDAQ)

Question 33

Advisors Act of 1940

Answer 33

firms or sole practitioners that give advice and receive compensation must register with the SEC and protect investors

Question 34

Regulation BI

Answer 34

Introduced with Dodd Frank Bill Raised the bar from suitability to beneficial/client's best interest

Question 35

DOL Rule

Answer 35

Obama Expanded Reg BI and fiduciary standards to ERISA accounts (IRAs)

Question 36

Dodd Frank Act

Answer 36

Prevents excessive risk raking; Improved accountability and transparency

Question 37

What must be delivered in writing ALWAYS?

Answer 37

Privacy Policy

Question 38

What can be delivered orally regardless of advice vs. planning?

Answer 38

Material conflicts of interest

Question 39

Time for response for SUBSEQUENT requests for information AFTER compliance counsel review

Answer 39

14

Question 40

Time to respond to failure to cooperate notice

Answer 40

14

Question 41

time for respondent to accept counter-offer

Answer 41

14

Question 42

time for hearing documents, written statements & stipulations due to CFP Board counsel

Answer 42

45

Question 43

time to update material changes and disciplinary history to CLIENTS

Answer 43

90

Question 44

time to disclose bankruptcy to CFP board

Answer 44

30

Question 45

time to disclose bankruptcy to clients

Answer 45

90

Question 46

privacy policy delivery time

Answer 46

once every 12 months (unless no changes)

Question 47

529 K-12

Answer 47

$10k, tuition only

Question 48

Has the authority to investigate and file a Complaint against a Respondent for alleged violations of the Code of Ethics & Standards or Conduct

Answer 48

CFP Board Counsel

Question 49

Has the authority to issue a final order that finds facts, determined whether a violation has occurred and imposes discipline in the form of a sanction

Answer 49

DEC

Question 50

Conduct the hearing, consists of at least 3 persons

Answer 50

Hearing panel

Question 51

What can happen after the CFP Board Counsel Delivers complaint?

Answer 51

settlement answer (respondent must pay hearing or settlemenet fee within 30 days)

Question 52

Failure to answer a complaint

Answer 52

Suspension for 1 year and 1 day or Revocation

Question 53

How long is suspension?

Answer 53

minimum of 90 days, maximum of 5 years

Question 54

need written acknowledgement of charitable contributions from the charity

Answer 54

$250+

Question 55

charitable orgs are required to provide a written disclosure to a donor who receives goods/services in exchange for a single payment of more than...

Answer 55

$75

Question 56

for denotation less than $250

Answer 56

receipt

Question 57

donation of more than $500

Answer 57

Section A of Form 8283 & donor letter

Question 58

Donation of more than $5,000

Answer 58

Section B of Form 8283 & appraisal & donor letter