Home > Certified Financial Planner (CFP) > Quizzes > CFP Certification Exam: General Principles
CFP Certification Exam: General Principles
Fast practice, instant feedback. Timer auto-submits when time’s up.
Avg score: 59% • Most missed: “Newman sued his former employer and won a judgment that provides him $2,000 at t…”
The CFP Certification Exam's General Principles section assesses foundational financial planning knowledge, covering roughly 15-16% of the 170-question, 4-hour, multiple-choice exam. Key topics include financial planning process steps, client interactions, time value of money (TVM), personal financial statements, education planning, and economic concepts.  Key elements of the General Principles domain include: Financial Planning Process: Understanding the seven steps, including defining the relationship, gathering data, analyzing, developing, implementing, and monitoring the plan. General... Show more
CFP Certification Exam: General Principles
Time left 00:00
25 Questions

1. Consumer debt payments, such as credit cards and vehicle loans, should not exceed __________ of __________ income.
2. Which of the following are correct regarding the laws of supply and demand?
(1) The law of demand demonstrates an inverse relationship between the price consumers are willing to pay for a product and the amount they are willing to purchase.
(2) Consumers are more responsive to price when substitutes are available.
(3) The demand curve slops down and to the right, indicating that as price decreases, the quantity demanded increases.
(4) The demand curve slops down and to the left, indicating that as price decreases, the quantity demanded decreases.
3. Which of the following are among the economic goals of the Federal Reserve and the US Treasury?
(1) Full employment
(2) Stable prices
(3) Economic growth
(4) Decrease government spending
4. Which of the following are characteristics of Perkins loans?
(1) Repayment may be extended to 10 years
(2) Available to undergraduate students only
(3) Both full-time and part-time students are eligible
(4) Distributed on the basis of financial need
5. What is the maximum contribution a donor can make in a single year to a 529 plan if the gift tax annual exclusion is $15,000? Assume the donor has not made previous contributions to a 529 plan.
6. According to the Principle of __________, a CFP® Board designee shall enter into a financial planning engagement only when the relationship is warranted based on the individual’s needs and objectives. (This question is subject to change after October 1, 2019, when the CFP® Board adopts its new Code of Ethics and Standards of Conduct.)
7. Which of the following are included as part of the financial planning step “Establish the client-planner relationship”? (This question is subject to change after October 1, 2019, when the CFP® Board adopts its new Code of Ethics and Standards of Conduct.)
(1) Identify the services to be provided.
(2) Identify activities necessary for implementation.
(3) Coordinate the financial plan with other professionals.
(4) Determine the roles and responsibilities of the client and financial planner.
8. All but which of the following are correct regarding Parent Loans to Undergraduate Students (PLUS)?
9. Which of the following is not one of the forms of discipline that may be imposed by the CFP® Board if grounds for discipline have been established against a CFP® Board designee?
10. Elaine wants to give her nephew $15,000 to take a trip around the world in 8 years. How much should she invest today at an annual rate of 5% compounded annually to have $15,000 in 8 years?
11. According to the Principle of __________, a CFP® Board designee who has knowledge that another CFP® Board designee has committed a violation of the Code of Ethics which raises substantial questions as to the designee’s honesty, trustworthiness or fitness as a CFP® Board designee in other respects, shall promptly inform the CFP® Board. (This question is subject to change after October 1, 2019, when the CFP® Board adopts its new Code of Ethics and Standards of Conduct.)
12. If an RIA has up to __________ of assets under management, the RIA must register with the individual state(s) where the RIA maintains clients.
13. Which of the following will result if money distributed from a 529 Plan is not used to pay for qualifying education expenses?
14. According to the Principle of __________, a CFP® Board designee shall not commingle client funds or other property with a CFP® Board designee’s personal funds and/or other property of a CFP® Board designee’s firm. (This question is subject to change after October 1, 2019, when the CFP® Board adopts its new Code of Ethics and Standards of Conduct.)
15. Newman sued his former employer and won a judgment that provides him $2,000 at the end of each 6-month period for the next 5 years. If the account that holds Newman’s settlement earns an average annual rate of 7% compounded semiannually, how much was the employer initially required to pay Newman?
16. Which of the following is/are correct regarding income elasticity?
(1) An inferior product, such as margarine, has negative income elasticity.
(2) If a product has positive income elasticity, as income increases the quantity demanded decreases.
17. Tracy’s bond has a market price of $910. The bond pays an 11% coupon and will mature in 6 years. What is the bond’s yield to maturity?
18. Which of the following places the Principles of the Code of Ethics in the correct order? (This question is subject to change after October 1, 2019, when the CFP® Board adopts its new Code of Ethics and Standards of Conduct.)
(1) The Principle of Fairness
(2) The Principle of Competence
(3) The Principle of Integrity
(4) The Principle of Professionalism
(5) The Principle of Objectivity
(6) The Principle of Diligence
(7) The Principle of Confidentiality
19. Gross Domestic Product (GDP) = C + I + G + E. The variables C, I, G, and E stand for which of the following?
(1) C = Personal consumption
(2) I = Issuance of government bonds
(3) G = Government consumption
(4) E = Net exports
20. What is the IRR of a 1-year investment in a REIT, if $100 is invested at the beginning of each month? Assume the REIT’s end of year value is $1,300.
21. Housing debt costs, including principal, interest, taxes, and insurance, should not exceed __________ of __________ income.
22. Which of the following are characteristics of Pell Grants?
(1) Only full-time students are eligible
(2) Distributed on the basis of financial need and availability of federal funds
(3) Receipt of other grants and loans is contingent upon applying for or receiving Pell funds
(4) Available to undergraduate and graduate students
23. Total debt payment should not exceed __________ of __________ income.
24. What is the IRR of a zero-coupon bond with a $1,000 face value, a current market price of $810, and 4 years until maturity?
25. Elaine wants to save $40,000 for a down payment on a new motor home in 3 years. She can invest $1,000 at the beginning of each month, and she expects to earn 10% compounded monthly on her investments. How much will Elaine have saved in 3 years? Will Elaine be able to achieve her goal?

⚡ Recently practiced quizzes in this topic
Live quiz activity
CFP Certification Exam: Tax Planning CFP Certification Exam: Estate Planning CFP Certification Exam: Practice Questions 2 CFP Certification Exam: Practice Questions CFP Certification Exam Practice Test 1 Certified Financial Planner (CFP) Formulas Practice Test CFP Certification Exam Practice Test 2 CFP: Certified Financial Planner
 
❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

🌈  Our mission is to help improve your scores in any subject and exam withonline quizzes, practice tests, study guides, & advice for students. Since 2018.
About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
Privacy | Terms |
Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.