Official exam: CFP Certification Examination Practice
Take a free CFP Exam practice questions online: a full 170-question paper with every answer explained, no sign-up, scored by topic. The full 340-question bank and the timed simulator are $14.99 for 30 days.
CFP Certification Examination Practice: a 340-question practice bank for the real Accounting & Finance Licensing standard, 2 full papers of 170 questions each with no repeats, every question written to the exam sponsor's published content outline.
Where these questions come from
Every question in this bank cites a source -- primarily irs.gov (30%) and investor.gov (19%) of this exam's citations.
This practice bank uses multiple-choice questions, including standalone items, short-scenario items, and case-study items built on shared client-facts sets. It is independent, original MCQ practice only -- not endorsed by or affiliated with CFP Board, not recalled exam content, and not a certification program. The live CFP Certification Examination is 170 questions across two 85-question sessions; verify current exam structure, eligibility, and requirements directly with CFP Board.
Take a full practice test free. 170 real questions built to the exam's domain weights, every answer explained, no sign-up required, with a domain-by-domain score at the end.
Want the whole bank for CFP Certification Examination Practice? One payment of $14.99 gives you 30 days of full access to this exam. It does not renew. No account needed to buy, and there is a 7-day money-back guarantee.
What is the Patels' net worth using the stated balance-sheet amounts?
A. $455,000
B. $700,000
C. $755,000
D. $1,435,000
Show answer and reasoning
Correct answer: C. $755,000
Assets are home $650,000 + cash $55,000 + retirement $300,000 + taxable portfolio $90,000 = $1,095,000. Liabilities are mortgage $300,000 + auto debt $40,000 = $340,000. Net worth is $1,095,000 − $340,000 = $755,000.
A: $455,000 omits the $300,000 retirement accounts from assets.
B: $700,000 fails to include or classify at least one stated asset correctly.
D: $1,435,000 adds liabilities to assets instead of subtracting them.
Source: Tool 'Creating an asset and liability log,' calculation of net worth as assets minus liabilities -- https://www.consumerfinance.gov/consumer-tools/educator-tools/your-money-your-goals/toolkit/
Ignoring market changes and taxes, how much employer stock would the Chens need to sell to reduce that holding from $280,000 to 10% of their $1,050,000 retirement portfolio?
A. $175,000
B. $105,000
C. $28,000
D. $252,000
Show answer and reasoning
Correct answer: A. $175,000
Ten percent of the $1,050,000 portfolio is $105,000. Reducing the employer-stock holding from $280,000 to that target requires sales of $280,000 minus $105,000, or $175,000. An actual implementation must also consider taxes, plan rules, trading restrictions, costs, and how proceeds are reinvested.
B: $105,000 is the target remaining position, not the amount to sell.
C: $28,000 is 10% of the existing employer-stock position rather than 10% of the total portfolio.
D: $252,000 would leave $28,000, which is not the stated $105,000 target position.
Source: Sections 'Diversification' and 'Rebalancing 101,' explaining target allocations and restoring a portfolio to its intended mix -- https://www.investor.gov/introduction-investing/getting-started/asset-allocation
Which expense is most appropriately funded from an emergency reserve rather than a sinking fund for a planned goal?
A. An unexpected essential furnace repair during winter
B. A vacation scheduled and priced nine months in advance
C. A known annual property-tax bill
D. A vehicle replacement planned for three years from now
Show answer and reasoning
Correct answer: A. An unexpected essential furnace repair during winter
An emergency reserve is intended for necessary, unplanned expenses or income interruptions. The furnace failure is both unexpected and essential. Known taxes, a scheduled vacation, and an anticipated vehicle replacement should ordinarily be incorporated into regular budgeting or dedicated sinking funds.
B: A scheduled vacation is discretionary and foreseeable, allowing advance funding through a planned-goal account.
C: An annual property-tax bill is predictable even if paid infrequently and belongs in the spending plan.
D: A three-year vehicle goal has a known horizon and can be funded through periodic planned savings.
Source: Section 'What is an emergency fund?' distinguishing unplanned expenses from routine spending -- https://www.consumerfinance.gov/an-essential-guide-to-building-an-emergency-fund/
A municipal bond yields 4.00%, and an investor's marginal federal income-tax rate is 32%. Ignoring state tax, AMT, and other effects, what taxable yield is equivalent?
A. 2.72%
B. 4.32%
C. 5.88%
D. 12.50%
Show answer and reasoning
Correct answer: C. 5.88%
Taxable-equivalent yield equals the tax-exempt yield divided by one minus the marginal tax rate: 4.00% / (1 - 0.32) = 4.00% / 0.68, or approximately 5.88%. Credit quality, duration, liquidity, state tax, and AMT exposure must also be compared.
A: 2.72% multiplies the municipal yield by 68%; it estimates an after-tax taxable yield from 4%, not the taxable yield needed to equal 4% tax exempt.
B: 4.32% adds 32 basis points rather than grossing the exempt yield up by one minus the tax rate.
D: 12.50% divides the yield by the tax rate rather than by one minus the tax rate.
Source: SEC-filed investor explanation under 'Understanding tax-equivalent yield,' defining the before-tax comparison and formula as municipal yield divided by one minus the tax rate -- https://www.sec.gov/Archives/edgar/data/205802/000092881606001487/a_taxexeincfnd.htm
An employee is 40% vested in a $50,000 employer-contribution account and is fully vested in $30,000 of employee elective deferrals. If employment ends now, how much is vested, ignoring earnings allocation after the valuation date?
A. $20,000
B. $32,000
C. $50,000
D. $80,000
Show answer and reasoning
Correct answer: C. $50,000
Employee elective deferrals are fully vested, so the employee retains $30,000. Forty percent of the $50,000 employer account is another $20,000. The total vested amount is therefore $50,000. Plan documents determine the actual vesting schedule and valuation mechanics.
A: $20,000 includes only the vested employer portion and omits the fully vested $30,000 employee deferrals.
B: $32,000 appears to apply 40% to the combined balance, but employee elective deferrals are already fully vested.
D: $80,000 includes the entire unvested employer account rather than only its 40% vested portion.
Source: Employee Benefits Security Administration retirement-plan FAQ, discussion of vesting and the employee's nonforfeitable right to salary-deferral contributions -- https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/faqs/retirement-plans-and-erisa-consumer
Where can I take a free CFP Exam practice questions online?
Right here. CertQuestUSA's free CFP Exam practice questions online is a full 170-question practice paper built to the real exam's domain weights, with every answer explained, with no sign-up and no credit card, and shows your score by topic at the end. The full 340-question bank, with every answer explained and cited to the exam sponsor's published content outline, is $14.99 for a 30-day pass that never renews.
How many questions are on the CertQuestUSA CFP Certification Examination Practice practice test?
340 questions total, split into 2 full papers of 170 each with no repeats across papers.
What topics does the CFP Certification Examination Practice test cover?
8 domains, with the heaviest weight on Retirement Savings and Income Planning (18%), Investment Planning (17%), and General Principles of Financial Planning (15%).
Where do CertQuestUSA's CFP Certification Examination Practice questions come from?
Primarily irs.gov (30%) and investor.gov (19%) of this bank's citations -- computed directly from this exam's own question sources, not a generic description.
Is there a free CFP Certification Examination Practice practice test?
Yes -- one full 170-question practice paper built to the exam's domain weights, free with no sign-up, with every answer explained and a domain-by-domain score at the end.
