Free CSI FP2 Practice Test & Real Exam Questions
What is the maximum of the payor spouse's net income that may be deducted to fulfil child support obligations?
Correct Answer: B
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Paul has recently been promoted at work, and is looking to pay down his debts. Paul has the following obligations:
Type
Interest rate (%)
Amortization (years)
Mortgage
3.95
22
Registered Retirement Savings Plan (RRSP) line of credit
6.00
N/A
Consolidation loan
8.95
3
Credit card
15.00
N/A
Which debt should Paul pay down last?
Type
Interest rate (%)
Amortization (years)
Mortgage
3.95
22
Registered Retirement Savings Plan (RRSP) line of credit
6.00
N/A
Consolidation loan
8.95
3
Credit card
15.00
N/A
Which debt should Paul pay down last?
Correct Answer: D
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Evelyn spends a great deal of her money on vacations. Consequently, her net cash flow is not as much as she would like. What is the best strategy to help Evelyn improve her cash flow?
Correct Answer: D
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George tells his financial advisor that he will need to buy a new car in two years and would like some advice on the best way to fund this goal. What consideration should his financial advisor determine first when discussing George's investment objective?
Correct Answer: C
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Franco is retiring from his job as a high school principal at the end of the year, at age 66. He has $100,000 in his group Registered Retirement Savings Plan (RRSP). His wife will continue to work for another 10 years, and he does not need money from his group RRSP. What would be the best retirement option for Franco?
Correct Answer: D
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Xavier is a high-net-worth client in the highest tax bracket. He has maximized his child's registered education savings plan, and is interested in setting up an informal trust account to supplement his child's education savings. What is the most appropriate investment vehicle for this account to minimize taxes for Xavier?
Correct Answer: D
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Nelson Smith has hired Jackie Fraser to be his financial advisor. Jackie works for FP Inc. On Nelson's behalf, Jackie has placed an order for units of the QBR Balanced Fund from QBR Investments Inc., a subsidiary of the QBR Insurance Company. Who is the principal and third-party for this transaction?
Correct Answer: A
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