Home > Certified Financial Planner (CFP) > Quizzes > CFP Certification Exam: Practice Questions
CFP Certification Exam: Practice Questions
Fast practice, instant feedback. Timer auto-submits when time’s up.
Avg score: 4% • Most missed: “Which of the following is/are correct regarding alimony and child support paymen…”
CFP certification practice questions in the U.S. are 170-question, scenario-based, multiple-choice, and case-study items designed to mimic the 6-hour, two-section CFP Board exam. They cover eight key domains, including tax, retirement, and estate planning, focusing on application rather than recall. Official, full-length simulations are available via the CFP Board website.  Content Domains: Questions cover eight main areas: Professional Conduct, General Principles, Risk Management, Investment Planning, Tax Planning, Retirement Savings, Estate Planning, and Psychology of Financial... Show more
CFP Certification Exam: Practice Questions
Time left 00:00
25 Questions

1. Which of the following is/are correct regarding the capital structure of closed-end mutual funds?
(1) A closed-end mutual fund has a fixed number of shares that, after original issue, trade on the secondary market.
(2) The price an investor pays when buying shares of a closed-end mutual fund is based on supply and demand.
2. In a defined contribution plan, the premiums paid for term, universal, or variable life insurance coverage cannot exceed __________ of the contributions made to the plan on the participant’s behalf.
3. Regarding hazards and perils, which of the following is correct concerning the risk of smoking a cigar indoors?
(1) Smoking a cigar indoors is a hazard.
(2) Smoking a cigar indoors is a peril.
(3) A fire that results from smoking indoors is a hazard.
(4) A fire that results from smoking indoors is a peril.
4. Which of the following is an irrevocable tax-exempt trust that funds a variety of benefits and may be established either by a collective bargaining agreement or directly by an employer? Its purpose is to provide employee benefits such as life insurance, health insurance, and severance pay.
5. Which of the following must occur for a company to revoke its S Corp status?
6. The Black-Scholes valuation model assumes call options are __________ (exercisable only at the expiration date) and not __________ (exercisable at any time before expiration).
7. According to the principles of behavioral finance, which term describes an investor’s tendency to look for information that supports his or her previously established decision, even if that decision was imprudent? This tendency may explain why investors are slow to sell an underperforming stock.
8. An investor’s portfolio has experienced returns of +8%, -7%, +6%, +3%, and -2% over the past five years. What is the portfolio’s standard deviation rounded to the nearest whole number?
9. A photographer can no longer afford to replace his expensive camera that is constantly being damaged on photo shoots. He decides to only edit photos rather than take pictures. Which method of risk management is the photographer using?
10. George’s son recently got his driver’s license when he turned age 16. As a gift, George bought his son a 20-year-old used car with 200,000 miles on it, for a cost of $1,000. George purchased liability insurance, but no damage protection for the vehicle. Which method of risk management is George using to deal with any potential damage that may occur to the car?
11. Katie purchased a new condo for $160,000. She financed the condo at 6.5% compounded monthly for 30 years. What payment is Katie required to make at the end of each month?
12. An active participant for purposes of deducting traditional IRA contributions is an individual who actively participates in all but which of the following retirement plans?
13. Buying a __________ and selling a __________ are both bearish strategies.
14. An ISO must be held for at least __________ after the option is exercised and for at least __________ after the option is granted.
15. How are forfeitures treated in a defined benefit plan?
16. Which of the following typically invest in high-quality, short-term investments such as T-Bills, commercial paper, and negotiable CDs? The underlying investments have an average maturity of 30 to 90 days.
17. Which of the following plans require immediate vesting?
18. Which of the following is correct regarding the relationship between a bond’s coupon and its duration?
19. Target benefit plans share which of the following characteristics with defined benefit plans?
(1) Contributions are determined through at least one actuarial calculation.
(2) Individual account balances are not used to record the financial status of each participant.
20. With a __________, the non-charitable income beneficiary receives payment of a fixed annual sum of at least __________ of the initial fair market value of trust assets. There is no provision for a variable payment.
21. All but which of the following property may qualify for a like-kind exchange?
(1) Personal use property
(2) Stocks and bonds
(3) Inventory
(4) Partnership interest
22. A qualified beneficiary has __________ following a qualifying event to elect COBRA continuation coverage.
23. Which of the following entities determines the minimum margin requirement for investment accounts?
24. Employer-provided group term life insurance has which of the following characteristics?
(1) The cost of up to $100,000 of coverage is tax-free to each employee.
(2) An employer can deduct its contribution to a group life insurance plan even if it pays for $200,000 of coverage.
25. Which of the following is a characteristic of a debenture bond?

⚡ 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 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.