Wealth Management Exam Materials
Course Introduction
Wealth Management is a comprehensive course designed to introduce students to the principles and practices involved in managing individual and institutional wealth. The course covers a range of topics including investment strategies, asset allocation, risk assessment, tax planning, retirement planning, estate planning, and the ethical and regulatory environment of wealth management. Students will learn to analyze clients' financial goals, develop tailored strategies to grow and protect wealth, and effectively utilize a variety of financial products and services. Through case studies and practical exercises, participants gain hands-on experience in formulating comprehensive wealth management plans suitable for diverse client profiles.
Recommended Textbook
Personal Financial Planning 13th Edition by
Lawrence J. Gitman
Available Study Resources on Quizplus
15 Chapters
2759 Verified Questions
2759 Flashcards
Source URL: https://quizplus.com/study-set/3271 Page 2
Chapter 1: Understanding the Financial Planning Process
Available Study Resources on Quizplus for this Chatper
142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/64933
Sample Questions
Q1) Two key indicators of economic activity in the U.S.are production levels and [employment levels | cost of living].
A)for the first item
B)for the second item
C)if neither item will correctly complete the statement.
Answer: A
Q2) The amount of goods and services each dollar buys at a given point in time is:
A) inflation
B) consumer price index (CPI)
C) purchasing power
D) none of the above
Answer: C
Q3) Utility refers to the amount of satisfaction a person gets from buying certain items.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Using Financial Statements and Budgets
Available Study Resources on Quizplus for this Chatper
184 Verified Questions
184 Flashcards
Source URL: https://quizplus.com/quiz/64934
Sample Questions
Q1) Payments made on your loan obligations should [increase | decrease] your net worth.
A)for the first item
B)for the second item
C)if neither item will correctly complete the statement.
Answer: A
Q2) Which of the following is not among the four categories accounting for almost three-quarters of consumer spending?
A) Utilities
B) Food
C) Transportation
D) Housing
E) Personal insurance and pensions
Answer: A
Q3) Using time value of money is important when planning for long-term goals.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Preparing Your Taxes
Available Study Resources on Quizplus for this Chatper
200 Verified Questions
200 Flashcards
Source URL: https://quizplus.com/quiz/64935
Sample Questions
Q1) Adjustments to income will decrease your taxable income.
A)True
B)False
Answer: True
Q2) Which of the following state and local taxes are deductible on federal income taxes for those that itemize deductions?
A) property taxes and excise taxes.
B) sales taxes and income taxes.
C) licensing fees and income taxes.
D) excise taxes and sales taxes.
E) income taxes and property taxes.
Answer: E
Q3) Gifts received from family and friends are included in gross income.
A)True
B)False
Answer: False
Q4) Social security taxes are paid on earned income but not on investment income.
A)True
B)False
Answer: True
Page 5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Managing Your Cash and Savings
Available Study Resources on Quizplus for this Chatper
193 Verified Questions
193 Flashcards
Source URL: https://quizplus.com/quiz/64936
Sample Questions
Q1) Interest rates will be lower on your [savings | checking] accounts.
A)for the first item
B)for the second item
C)if neither item will correctly complete the statement.
Q2) One could expect to earn a higher rate of interest on a certificate of deposit than on a checking account.
A)True B)False
Q3) Your savings will grow faster with monthly interest compounding than with quarterly interest compounding.
A)True B)False
Q4) Your checkbook balance shows $706.50.The bank statement shows $772.77.The bank paid $2.50 interest.Checks 1501 ($85),1507 ($50.16),1511 ($20.50)are not shown on the statement.A service charge of $5 was levied by the bank.You made a $85 deposit yesterday that is not on the statement.What is the reconciled balance?
Q5) Most credit unions provide their members with deposit insurance. A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Making Automobile and Housing Decisions
Available Study Resources on Quizplus for this Chatper
220 Verified Questions
220 Flashcards
Source URL: https://quizplus.com/quiz/64937
Sample Questions
Q1) According to federal law,private mortgage insurance on most loans currently made ends automatically once the mortgage is paid down to 80% of the original value of the house.
A)True
B)False
Q2) One can increase the tax benefits of homeownership by selecting a shorter term mortgage,for example 15 years rather than 30 years.
A)True
B)False
Q3) The type of mortgage that will most likely need to be refinanced is the ____ mortgage.
A) fixed-rate
B) adjustable-rate
C) balloon-payment
D) graduated-payment
E) growing-equity
Q4) Negative amortization is possible with an adjustable-rate mortgage.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Using Credit
Available Study Resources on Quizplus for this Chatper
178 Verified Questions
178 Flashcards
Source URL: https://quizplus.com/quiz/64938
Sample Questions
Q1) A credit limit refers to the maximum amount the cardholder can owe the issuer at any point in time.
A)True
B)False
Q2) Most of the reduction in household indebtedness is due to
A) fewer new loans
B) loan defaults
C) accelerated payment schedules
D) loan workout agreements
E) c and d
Q3) Lindsey has a job with monthly take-home pay of $3,500.Using the suggested maximum debt safety ratio,what maximum debt burden per month can she assume?
Q4) Using [credit | savings] to handle financial emergencies is the recommended choice.
A)for the first item
B)for the second item
C)if neither item will correctly complete the statement.
Q5) The APR on this account is 18%.Assuming the $926 does not include any interest charge,how much of your minimum payment will be used for interest?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Using Consumer Loans
Available Study Resources on Quizplus for this Chatper
161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/64939
Sample Questions
Q1) If the discount method is used to calculate a finance charge of $250.60 on a $2,400 loan,the amount to be disbursed to the borrower is $2,400.
A)True
B)False
Q2) A chattel mortgage is a legal claim that gives lenders the right to liquidate specific personal property to satisfy their claims in the event of default.
A)True
B)False
Q3) Earnings on 529 college savings plans can be tax free when used for qualifying college education expenses.
A)True
B)False
Q4) The majority of consumer loans are set up with fixed interest rates. A)True
B)False
Q5) PLUS loans are made to parents or legal guardians rather than to the student. A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Insuring Your Life
Available Study Resources on Quizplus for this Chatper
157 Verified Questions
157 Flashcards
Source URL: https://quizplus.com/quiz/64940
Sample Questions
Q1) Life insurance death benefits are not subject to income taxes.
A)True
B)False
Q2) With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for between 20% to 25% of total premiums paid over the life of the policy.
A)True
B)False
Q3) The basic assumptions that the company used to compute its life insurance premiums include all but
A) age
B) sex
C) health status
D) income
E) none of the above
Q4) Smoking [will | will not] be a factor in determining life insurance premiums.
A)for the first item
B)for the second item
C)if neither item will correctly complete the statement.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Insuring Your Health
Available Study Resources on Quizplus for this Chatper
164 Verified Questions
164 Flashcards
Source URL: https://quizplus.com/quiz/64941
Sample Questions
Q1) An elimination period in disability income insurance is most closely analogous to which of the following cost sharing provisions in health insurance?
A) deductible
B) coinsurance
C) limit
D) cap
E) all of the above closely resemble an elimination period
Q2) Blue Cross provides hospital coverage and Blue Shield provides prescription pharmacy coverage.
A)True
B)False
Q3) Medicare Advantage policies require payment from the policyholder in the form of a deductible.
A)True
B)False
Q4) Advances in medical technology,prescriptions drugs and treatments have substantially reduced the costs health care in recent decades.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Protecting Your Property
Available Study Resources on Quizplus for this Chatper
194 Verified Questions
194 Flashcards
Source URL: https://quizplus.com/quiz/64942
Sample Questions
Q1) Generally,actual cash value is defined as
A) replacement cost.
B) original purchase price.
C) market value.
D) purchase cost minus depreciation.
E) replacement cost minus depreciation.
Q2) The deductible on a standard homeowners' policy applies to
A) coverage on the house.
B) coverage on personal property.
C) liability coverage.
D) a and b
E) a,b,and c
Q3) If you have an outstanding loan on your car,the contract will require you to carry ____ insurance.
A) bodily injury liability
B) property damage liability
C) medical payments
D) collision and comprehensive
E) all of these
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: Investment Planning
Available Study Resources on Quizplus for this Chatper
196 Verified Questions
196 Flashcards
Source URL: https://quizplus.com/quiz/64943
Sample Questions
Q1) An individual is more likely to use the secondary markets than the primary market.
A)True
B)False
Q2) A convertible bond would let the investor exchange it for [preferred | common] stock.
A)for the first item
B)for the second item
C)if neither item will correctly complete the statement.
Q3) An IPO is be sold in the [primary | secondary] market many times.
A)for the first item
B)for the second item
C)if neither item will correctly complete the statement.
Q4) Common stock generally allows the stockholder to vote on issues of corporate governance.
A)True B)False
Q5) A market order to sell would be filled at the highest price available that day. A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Investing in Stocks and Bonds
Available Study Resources on Quizplus for this Chatper
194 Verified Questions
194 Flashcards
Source URL: https://quizplus.com/quiz/64944
Sample Questions
Q1) Convertible preferred stock can be exchanged for common stock.
A)True
B)False
Q2) A bond is issued at $1,000 par value during a time in which interest rates for similar bonds were 8%.Today new bonds issued with a similar credit worthiness is 10%.Which of the following is most likely to be true about the bond.
A) It is currently selling for a premium
B) It is currently selling at a discount
C) currently selling at par
D) The bond is likely to be called
E) none of the above
Q3) You are looking for a guaranteed steady stream of income; you should invest in [stocks | bonds].
A)for the first item
B)for the second item
C)if neither item will correctly complete the statement.
Q4) Common stock owners must receive dividends before preferred stockholders.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Investing in Mutual Funds
Available Study Resources on Quizplus for this Chatper
174 Verified Questions
174 Flashcards
Source URL: https://quizplus.com/quiz/64945
Sample Questions
Q1) Mutual funds may be classified by the types of securities they purchase.
A)True
B)False
Q2) The net asset value (NAV)per share is found by dividing the market value of the fund's securities less the fund's liabilities by the number of shares outstanding.
A)True
B)False
Q3) Advantages of exchange traded funds over mutual funds include [narrow | broad] industry selection.
A)for the first item
B)for the second item
C)if neither item will correctly complete the statement.
Q4) Exchange traded funds are investment company shares that trade [at day's close | throughout the day] on stock exchanges.
A)for the first item
B)for the second item
C)if neither item will correctly complete the statement.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Planning for Retirement
Available Study Resources on Quizplus for this Chatper
225 Verified Questions
225 Flashcards
Source URL: https://quizplus.com/quiz/64946
Sample Questions
Q1) The Social Security administration provides estimates of retirement benefits one could expect to receive in [current | inflated] dollars.
A)for the first item
B)for the second item
C)if neither item will correctly complete the statement.
Q2) Investment returns on annuities have outperformed mutual fund returns over the past five year.
A)True
B)False
Q3) More than 50 percent of all wage earners and salaried workers today are covered by some type of employer-sponsored retirement or profit-sharing plan.
A)True
B)False
Q4) Having an accurate current income and expenditures statement would be very useful when calculating retirement needs.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Preserving Your Estate
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/64947
Sample Questions
Q1) Gift giving can reduce estate tax liability.
A)True
B)False
Q2) The unlimited marital deduction is available only if the recipient spouse is a [U.S.citizen and files a gift tax return | legal resident and does not have to file a gift tax return].
A)for the first item
B)for the second item
C)if neither item will correctly complete the statement.
Q3) A valid will cannot be contested.
A)True
B)False
Q4) In most states,divorce creates an automatic revocation or modification of a will.
A)True
B)False
Q5) [Most | Very few] people need to do estate planning.
A)for the first item
B)for the second item
C)if neither item will correctly complete the statement.
To view all questions and flashcards with answers, click on the resource link above. Page 17