Attitude
You are working with a couple and recognize their differences in financial values, but
also recognize that each partner has made sacrifices during their relationship to make
collaborative decisions. As a result, the couple’s relationship and their satisfaction with
their financial situation seem high. Which theoretical lens are you likely using to view
this couple?
a. Interdependence theory
b. Nonviolent communication theory
c. Strategic couples theory
d. Maslow’s Hierarchy of Needs
a. Interdependence theory
Which of the following best describes mental accounting?
a. Making decisions using a limited amount of information
b. Tendency to pay greater attention to information one is familiar with
c. Cognitively compartmentalizing cash flows or assets
d. Giving greater weight to items that are more emotional when making decisions
c. Cognitively compartmentalizing cash flows or assets
Which theory helps explain couple behavior regarding financial satisfaction seeks to understand the interaction between people and social groups in competition for scarce resources?
a. Conflict theory
b. Social exchange theory
c. Couples and finances theory
d. Communication privacy management theory
a. Conflict theory
Ravi is a new financial planner and is eager to help clients. During the last
appointment with his client, Emilio, Robert learned that one of Emilio's highest priorities
was to purchase a house for his family. Robert promised to email him and let him know
the average mortgage rates and connect him with three real estate referrals. As is often
the case, Robert became busy with his promises to other clients and forgot to email
Emilio. In the future, Robert should be aware of:
a. Overpromising and not delivering
b. Making referrals
c. Overcommunicating
d. Lack of competency
a. Overpromising and not delivering
Which of the following is the most appropriate response to express empathy toward a
client?
a. I am sorry to hear about the death of your mother
b. Things happen for a reason
c. I know this situation will make you stronger
d. This time sounds very challenging for you
d. This time sounds very challenging for you
Therapeutic communication strategies include:
a. Closed-ended questions, open-ended questions, active listening, and
externalization
b. Open-ended questions, mirroring, active listening, and externalizing goals
c. Observing, asking about feelings, identifying problems, treating problems
d. Mirroring, active listening, open-ended questions, identifying and treating problems
b. Open-ended questions, mirroring, active listening, and externalizing goals
Which of the following is NOT a stage in the Transtheoretical Model of Change:
a. Precontemplation
b. Contemplation
c. Stewardship
d. Maintenance
c. Stewardship
Which of the following is a strategy that financial planners can use as a diagnostician, prescriber, or healer?
a. Diagnose according to the Diagnostic and Statistical Manual of Mental Disorders
b. Financial planners are not allowed to help clients create change
c. Slow the process and reduce focus on immediate gratification
d. Prescribe Cognitive Behavioral Therapy treatment
c. Slow the process and reduce focus on immediate gratification
Gena and Carl meet with their financial planner for the first time. The financial planner asks many questions to help understand their financial situation. After learning about their expenses, he asks “Is there anything else you can think of?” This question is part of which method of counseling:
a. Financial transparency method
b. Socratic Method
c. Financial literacy engagement
d. Support questionning
b. Socratic Method
Elders tend to be most at risk for financial abuse due to:
a. Lack of financial knowledge
b. Isolation that increases trust
c. Financial Enabling
d. Financial Dependency
b. Isolation that increases trust
A client recalls a parent making a poor investment decision and vividly recalls being
emotionally distraught about the consequences of the decision. The vivid emotional
recollection can best be described as which type of bias?
a. Availability bias
b. Salience bias
c. Confirmation bias
d. Persuasion bias
b. Salience bias
Three strategies to increase financial efficacy include:
a. Identify the client's preferred learning style, describe the client's current stage of change, and learn the client's money story
b. Identify the client's risk score, create small tangible tasks, and offer positive expectancy
c. Identify the client's current stage of change, and deliver frequent positive feedback
d. Identify the client's preferred learning style; create small, tangible tasks; and deliver frequent, positive feedback
d. Identify the client's preferred learning style; create small, tangible tasks; and deliver frequent, positive feedback
Criticism in a couple relationship typically begins with:
a. Blaming
b. Shaming
c. Defending
d. Stonwalling
a. Blaming
Basic pacing techniques used in verbal communication with clients include which of the
following:
a. Creating assumptions
b. Restating/paraphrasing
c. Spatial rearrangement
d. Consistent eye contact
b. Restating/paraphrasing
One reason that women tend to have less power than men when it comes to financial
decision-making is:
a. Women tend to have more confidence
b. Men have lower financial knowledge
c. Gaps between genders in risk-taking
d. Having egalitarian financial roles
c. Gaps between genders in risk-taking
When people hold on to their unsuccessful loss-making investments or businesses
because they have previously committed resources to the specific investment or
business, this is called:
a. Sunk cost fallacy
b. Status quo bias
c. Anchoring
d. Gambler’s fallacy
a. Sunk cost fallacy
9. The mental shortcuts that some people apply to estimate risk tolerance is best
identified as which of the following:
a. Professional judgment
b. Risk preference
c. Heuristics
d. Normative modeling
c. Heuristics
Personal risks associated with self-disclosure include:
a. Losing influence in a relationship
b. Creating a positive impression
c. Developing trust
d. Decrease of secrecy in a relationship
a. Losing influence in a relationship
Keala and Paulo are a couple who recently met with a new financial planner. They both have jobs that pay $150,000. They both invest in their employer sponsored retirement account. Keala and Bill were skeptical about meeting with their financial planner and the financial planner was surprised when the couple told them they have an emergency fund that they keep in a “safe” place in their house. The financial planner uses curiosity to elicit a deeper knowledge about their emergency fund. Which of the following is the most likely reason the couple keeps their emergency fund at home?
a. Keeping their emergency fund in the house makes is very accessible
b. Mistrust toward mainstream financial products and services
c. Liquidity is the most important characteristic of an emergency fund
d. Lack of financial literacy about mainstream savings vehicles
b. Mistrust toward mainstream financial products and services
The best antidote for financial manipulation and abuse is:
a. Strong portfolio performance and balance sheet
b. Decreased financial enabling and increased financial satisfaction
c. Solid client-planner working alliance
d. Increased financial confidence and independence
d. Increased financial confidence and independence
Jasmine has diligently saved money for retirement, emergencies, and her young child’s
future college savings. Although she was not planning on purchasing a new car, Jasmine
bought a brand new car that was more expensive than she typically pays for vehicles.
She rationalized that she needed a new car and the safety features on the car were
worth the extra money. Which of the following best describes Jasmine’s experience?
a. Cognitive dissonance
b. Endowment effect
c. Availability bias
d. Confirmation bias
a. Cognitive dissonance
Money scripts can best be defined as:
a. Unconscious notions or patterns of beliefs that people hold about money
b. State of perceived well-being resulting from familiarity with financial matters
c. Ability to synthesize emotional and concrete financial information together
d. Communication strategy used by financial planners to facilitate communication
a. Unconscious notions or patterns of beliefs that people hold about money
What is the acronym for Trust?
B - boundaries
R - reliability
A - accountability
V - vault
I - integrity
N - nonjudgement
G - generosity
If a planner senses a power dynamic struggle within a couple, the goal of the financial planner should be to:
a. Increase financial self-efficacy and confidence of both partners
b. Reduce financial self-efficacy and increase confidence of both partners
c. Increase effective communication skills for each partner
d. Reduce conflict by exploring each partner’s unhealthy financial behaviors
a. Increase financial self-efficacy and confidence of both partners
The amount of stress one experiences as a result of a stressor can best be described as a
combination of:
a. Fight, flight, and freeze
b. Stressor, available resources, and perceived significance
c. Stressor, physiological response, tend and befriend
d. Fight, flight, and available resources
b. Stressor, available resources, and perceived significance