Cwmc Module 13: Financial Advisors Competency Test

16 Questions | Total Attempts: 55

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Module Quizzes & Trivia

This quiz is part of LFE Institute's CWMC (Certified Workplace Money Coaching) course. It will test your proficiency in the Financial Advisors Module (Module 13) of the program. The questions are all multiple choice, and are designed to be a review of this Module. Let LFE know when you've successfully completed this test and are ready to begin the next Module. Correct answers required for passing grade: 14/17


Questions and Answers
  • 1. 
    Which questions should be asked of a financial advisor to ensure he/she is a quality advisor? (check all that apply)
    • A. 

      What credentials do you have and what do those credentials mean?

    • B. 

      What is your religion?

    • C. 

      How are you compensated?

    • D. 

      Will you provide references that I can contact and talk to?

    • E. 

      Do you validate parking?

  • 2. 
    Which question should an expert financial advisor NOT ask a potential client?
    • A. 

      When do you plan to retire?

    • B. 

      What advisor or company do your friends use?

    • C. 

      Does your employer offer a 401(k)?

    • D. 

      What is your risk tolerance?

    • E. 

      What are your retirement plans, goals and needs?

  • 3. 
    What do the credentials "CFP" mean in the context of this CWMC Module?
    • A. 

      Choose a Financial Planner

    • B. 

      Concealed Firearms Permit

    • C. 

      Certified Financial Planner

    • D. 

      Consumer Financial Planning

    • E. 

      Corporate Financial Plan

  • 4. 
    Which of the following Web sites are possible recommendations to someone who is preparing to work with a financial advisor? (check all that apply)
    • A. 

      Www.bloomberg.com/invest/calculators/retire.html

    • B. 

      Www.garrettplanningnetwork.com

    • C. 

      Www.napfa.org

    • D. 

      Www.adviserinfo.sec.gov

    • E. 

      None of the above

  • 5. 
    Which of the following is NOT trained in financial services?
    • A. 

      EAP advisor

    • B. 

      Insurance agent

    • C. 

      Mortgage lender

    • D. 

      Tax attorney

    • E. 

      None of the above; they are all trained in financial services.

  • 6. 
    Which one of the following should an investor assume when working with a financial advisor?
    • A. 

      The expected growth is only a projection

    • B. 

      The recommendations have the consumer’s best interests in mind

    • C. 

      The risk is clearly explained

    • D. 

      The advisor has years of training and is qualified to make a recommendation

  • 7. 
    Informational text from the Internet is best used in a Money Coach reply by:
    • A. 

      Using the “cut and paste” technique

    • B. 

      Retyping sentences word for word

    • C. 

      Gleaning useful data, then crafting that into your own response

    • D. 

      Plagiarizing blatantly

    • E. 

      None of the above. Money Coaches should rarely use Web sites since they are all biased.

  • 8. 
    Informational text from authorized use of the LFE Library of Responses is best used to respond to a client's Money Coaching question with which of the following techniques? (check all that apply)
    • A. 

      Using the “cut and paste” technique for the entire Q&A

    • B. 

      Recopying sentences word for word where applicable

    • C. 

      Gleaning useful data, then crafting that into your own response to avoid plagiarizing

    • D. 

      None of the above. Money Coaches should rarely use the LFE Library since the response probably won’t answer their specific question.

  • 9. 
    What's the best course of action if an advisor doesn't ask any questions?
    • A. 

      Walk away

    • B. 

      Proceed with caution

    • C. 

      Review their recommendations every six months

    • D. 

      Sue for neglectful behavior

    • E. 

      Use a retail Credit Counselor instead

  • 10. 
    Which of the following would you avoid if you have investment/retirement questions?
    • A. 

      CFA

    • B. 

      FNP

    • C. 

      CFP

    • D. 

      CTFA

    • E. 

      CLU

  • 11. 
    Which of the following statements or practices is indicative of a possible scammer? (check all that apply)
    • A. 

      "I have a hot tip on a once-in-a-lifetime opportunity!"

    • B. 

      "We can guarantee you will not lose money!"

    • C. 

      "I require the discretion to trade in your account without prior permission."

    • D. 

      Cold calls

    • E. 

      Unsolicited letters or e-mail offers

  • 12. 
    Which of the following would you go to if you needed personal tax advice?
    • A. 

      CFA

    • B. 

      FNP

    • C. 

      CMA

    • D. 

      CPA

    • E. 

      CLU

  • 13. 
    To earn the distinction of "Financial Planner," a person must go through which of the following qualifications?
    • A. 

      2 years of training

    • B. 

      Pass complex exams

    • C. 

      Must study the tax implications of investment strategies

    • D. 

      Required to obtain a CFP License

    • E. 

      None of the above. No specific training is required.

  • 14. 
    Insurance agents make excellent retirement specialists because:
    • A. 

      Many of the products they sell are sold as retirement vehicles

    • B. 

      They must pass strict retirement planning tests

    • C. 

      Cash value life insurance is a great retirement investment

    • D. 

      They must study the tax implications of investment strategies

    • E. 

      None of the above. Insurance agents do NOT make good retirement specialists.

  • 15. 
    Financial advisors can help provide "Safe Harbor" protection for employers under ERISA if they:
    • A. 

      Offer the best investments to those employees

    • B. 

      Cover the topics included in the SOX guidelines

    • C. 

      Do not stand to benefit from the education (other than getting paid just for the education)

    • D. 

      Talk about the tax benefits of the company’s 401(k)

  • 16. 
    Under the new PPA, financial advisors:
    • A. 

      Are able to sell investment products to employees

    • B. 

      Are largely waiting until the guidelines are more clearly defined

    • C. 

      Are now required to teach employees how to select the best financial advisor to work with

    • D. 

      Must cover insurance investments in their training