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CSI Financial Planning II (FPII) Sample Questions:
In order to complete the analysis and development of a financial plan, an advisor receives a client's investment statements and tax returns. From the perspective of principle six (code of ethics), what action should the advisor take in order to maintain a relationship of trust and confidence?
- A. Making product suggestions that strictly benefit the client's overall financial positioning.
- B. Referring the client for needs to other professionals within the advisor's network.
- C. Securing the documents to be used by authorized personnel only.
- D. Using the data to investigate products before making a recommendation.
Correct Answer: C 🗳️
Explanation: Only visible for UpdateDumps members. You can sign-up / login (it's free).
Maxwell is filing a rights or things tax return for his deceased mother. She had the following sources of income:
Debenture interest coupons.
Unpaid dividends declared before her death.
Old age security that was due before her death.
Income from a registered retirement savings plan (RRSP).
Which form of income will Maxwell have to exclude from the rights or things tax return?
- A. Unpaid dividends declared before her death.
- B. Income from an RRSP.
- C. Old age security that was due before her death.
- D. Debenture interest coupons.
Correct Answer: B 🗳️
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The following table outlines details for a life insurance policy issued in 1995:
Details
Amounts
Cash surrender value
$8,000
Premiums paid
$6,000
Dividends declared
$1,500
Net cost of pure insurance
$750
Marginal tax rate
30%
Assuming the policy is completely surrendered, what are the taxes payable?
- A. $825.
- B. $1,275.
- C. $2,750.
- D. $4,250.
Correct Answer: B 🗳️
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Joshua and Marie are siblings who inherited an apartment building from their parents, which they now own jointly. They share the net profits equally, but they do not have a signed agreement. What ruling will the courts apply with respect to the existence of a partnership?
- A. They are deemed to be partners because they share net profits.
- B. They are deemed to be partners because they both have ownership in the apartment building.
- C. They are deemed not to be partners because they are operating at non-arm's length.
- D. They are deemed not to be partners because they do not have a written agreement.
Correct Answer: A 🗳️
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Kimberly, age 24, has few assets, and is single with no children. Kimberly has a 10-year-old niece Tanya who she would like her entire estate to be distributed to at death. She consults with her lawyer Jackie to write a will. What is the most important clause Jackie should add in Kimberly's will?
- A. Funeral instructions and requirement to pay all debts and obligations.
- B. Appointment of a guardian for a minor.
- C. Discretionary encroachment.
- D. Discretionary powers to divest assets, borrow from estate and to make investment decisions.
Correct Answer: C 🗳️
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