1. The anti-fraud provisions of the Act applies to:

a. Only those who must register with the SEC or the states

b. Only advisors of pension plans

c. Only situations where security transactions take place.

d. All investment advisors, even those who are exempt from registration

2. Investment advisor representatives must still register with the states in which they operate even if their firms are registered with the SEC. True/False

3. If you hold yourself out to the public as financial planner, you lose the exemption from registration even if you otherwise qualify. True/False

4. Which of the following is NOT exempt from the definition of an investment advisor?

a. Those who advise clients solely about U.S. Treasury obligations

b. Publisher of the local newspaper, the Daily Beagle

c. Local attorney who occasionally advises clients about setting up investment accounts for their jury awards

d. Insurance agent who advises clients about no load mutual funds

5. Retirees may be sensitive to which of the following uncontrollable factors which may deplete their funds?

a. An inheritance to leave to their family

b. Loneliness

c. Carefree spending

d. Living too long

6. A truly personalized financial plan must consider factors such as cultural background and family experiences of the client. True/false

7. The financial planner must recognize that there is a strong relationship between stress and money. True/False

8. According to the Code of Ethics and Professional Responsibility, a CFP practitioner who gives a brochure to clients disclosing information about his or her firm must include all of the following EXCEPT:

a. The identity of insurance companies that the firm represents and any commission arrangements with those companies

b. Resumes of the firm's employees who will provide financial planning services to the client

c. A statement of whether the firm's compensation will include commissions or fees only

d. The identity of the bank or other institution where the firm maintains a checking account

9. Which of the following statements is true regarding financial behavior?

a. Only a small number of people have assets that exceed their needs

b. Financial issues do not affect other parts of a person's life

c. Divorced individuals are usually looking forward to easily meeting a new life partner

d. Young single people typically are very good about saving for retirement

10. Financial advisor John Smith manages investment accounts for clients mostly in his home state of Ohio. He should register with the Ohio division of securities if:

a. He is not a CFP certificant

b. The assets under his management exceed 30 million

c. He has any clients outside Ohio

d. Assets under his management are less than 25 million