Exam Code: FP2
Exam Name: Financial Planning II (FPII)
Updated: Oct 11, 2026
Q & A: 62 Questions and Answers
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What is a disadvantage of a corporation?
Correct Answer: A 🗳️
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What is unique about the taxation of a partnership?
Correct Answer: C 🗳️
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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?
Correct Answer: A 🗳️
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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?
Correct Answer: B 🗳️
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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?
Correct Answer: A 🗳️
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