CSI FP2 : Financial Planning II (FPII)

FP2 real exams

Exam Code: FP2

Exam Name: Financial Planning II (FPII)

Updated: Oct 11, 2026

Q & A: 62 Questions and Answers

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CSI Financial Planning II (FPII) Sample Questions:

Question #1

What is a disadvantage of a corporation?

  • A. At death of a shareholder, there may be a potential for double taxation.
  • B. There are no government grants available to corporations.
  • C. Attribution rules apply to loans to a small business corporation.
  • D. Owners are not able to limit their personal liability for business debts.
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Correct Answer: A  🗳️

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Question #2

What is unique about the taxation of a partnership?

  • A. Partners cannot receive a dividend tax credit on the income tax return.
  • B. Partnerships are eligible for the enhanced capital gains exemption.
  • C. Partners must report the share of profits or loss on their individual tax returns.
  • D. Partnership earnings are eligible for the small business tax rate.
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Correct Answer: C  🗳️

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Question #3

Fiona and Stanley have provided the following data in order for their advisor to proceed with a capital needs analysis:
Fiona ($)
Assets
Stanley ($)
5,000
Cash
3,000
150,000
Life insurance
125,000
30,000
Investments
30,000
Fiona ($)
Estate obligations
Stanley ($)
15,000
Last expenses
15,000
10,000
Car loans
5,000
75,000
Mortgage outstanding
75,000
Assuming their required net monthly income is $3,000, and the discount rate is 6%, how much additional life insurance should Fiona and Stanley obtain respectively?

  • A. $515,000 and $537,000.
  • B. $700,000 and $695,000.
  • C. $685,000 and $663,000.
  • D. $600,000 and $600,000.
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Correct Answer: A  🗳️

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Question #4

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?

  • A. Consolidation loan.
  • B. Mortgage.
  • C. Credit card.
  • D. RRSP line of credit.
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Correct Answer: B  🗳️

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Question #5

Sarah would like to add another stock holding to her portfolio. She is researching the financial condition of different companies and trying to determine their potential for future growth. What type of approach is Sarah taking when reviewing these companies?

  • A. Fundamental analysis.
  • B. Technical analysis.
  • C. Passive investment strategy.
  • D. Tactical asset allocation.
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Correct Answer: A  🗳️

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