HS 300 Module 1 Test Bank Questions

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1. What is the correct order of the steps in the financial planning process?
  • I. Identifying and Selecting Goals
  • II. Implementing the Financial Planning Recommendation(s)
  • III. Monitoring Progress and Updating
  • IV. Analyzing the Client’s Current Course of Action and Potential Alternative Course(s) of Action
  • V. Developing the Financial Planning Recommendation(s)
  • VI. Presenting the Financial Planning Recommendation(s)
  • VII. Understanding the Client’s Personal and Financial Circumstances

2. During which step of the financial planning process would a planner provide life insurance applications to their client?

3. All the following statements are correct regarding the “Analyzing the Client’s Current Course of Action and Potential Alternative Course(s) of Action” step of the financial planning process EXCEPT:

4. Which step in the financial planning process comes after “Presenting the Financial Planning Recommendation(s)”?

5. Which one of the following actions would occur during the “Developing the Financial Planning Recommendation(s)” step of the financial planning process?

6. During a meeting with your client, Farah, she calls her benefits office to increase the percentage of her paycheck that is deposited into her 401(k) account. In which step of the financial planning process are you engaged?

7. Rajiv has been your client for six years. In your annual meeting with him, you evaluate his insurance coverages to make sure they are still in line with his needs. In which part of the financial planning process are you engaged?

8. In which step of the financial planning process would a new client provide her financial planner with tax returns and bank statements?

9. One of your clients, Felix, has expressed interest in purchasing a vacation home in the U.S. Virgin Islands and a boat. At your next meeting, you provide Felix with a plan for how to fund this goal along with two alternative plans. In which part of the financial planning process are you engaged?

10. During a meeting with your client, Louisa, you guide her to arrange her financial priorities in order from “must have” to “nice to have.” In which part of the financial planning process are you engaged?