FPQP EXAM STUDY SET ACTUAL 2025/2026 LATEST UPDATE

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FPQP EXAM STUDY SET ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS Abbreviation for the Financial Planning process - Answer -Umbrella's In A Downpour Prevent Immense Mess What are the steps in the Financial Planning process? - Answer -- Understand the client's situation - Identify the goals of the clients - Analyze the client's course & potential alternative courses - Develop financial planning recommendations - Present recommendations - Implement the recommendations - Monitor progress & update the implemented recommendations Basic Liquidity Ratio - Answer -= Liquid Assets/Monthly Expenses - should be 3% or above Savings Ratio - Answer -= savings & investments / annual gross income - should have a minimum of 10% Front-End Debt-to-Income Ratio Need assistance on Online classes, Exams & Assignments? Reach out for instant help!! Full Course Assistance, Plagiarism-free Essay Writing, Research Paper, Dissertation, Discussion Posts, etc…. Confidential & Secure services. Tutors are available for all subjects! Email now at: tutorjean01@gmail.com - Answer -= PITI (housing costs) / annual gross income - housing cost ratio - should be maximum of 28% of gross income What is PITI in the front-end ratio? - Answer -- Principle, Interest, Taxes, Insurance - Principle & Interest = mortgage loan payment Back-End Debt-to-Income Ratio - Answer -= annual debt repayments / annual gross income - total debt ratio - debt repayment = any loan payment (home, auto, student, etc.) Nonmortgage Debt-to-Income Ratio - Answer -= annual non-mortgage debt repayment / annual net income - consumer ratio - should be maximum of 20% of net income - non-mortgage = non-home (auto, student, etc.) Fair Credit Billing Act - Answer -Provides consumers with a means to dispute a billing error on open-ended credit accounts (credit and charge cards) What is included on the Statement of Financial Position (SFP)? - Answer -Assets, Liabilities & Net Worth What is the SFP also known as? - Answer -Balance Sheet What is included in the Assets portion of the SFP? - Answer -- cash/cash equivalents - invested assets - use assets Need assistance on Online classes, Exams & Assignments? Reach out for instant help!! Full Course Assistance, Plagiarism-free Essay Writing, Research Paper, Dissertation, Discussion Posts, etc…. Confidential & Secure services. Tutors are available for all subjects! Email now at: tutorjean01@gmail.com