Free practice test

Financial Advisor Practice Test

Check what you know about the financial advisor job with 15 free questions and instant explanations.

Updated By the Career Education Institute Curriculum Team
About this practice test

15 multiple-choice questions on financial advisor knowledge, safety and vocabulary. Submit to see your score and explanations, or open any question’s answer as you go. Nothing is saved or shared.

Question 1 of 15A fiduciary must:
Show answer

Answer: Act in the client’s best interest. Duty.

Question 2 of 15Diversification:
Show answer

Answer: Spreads risk. Risk.

Question 3 of 15A 529 plan is for:
Show answer

Answer: College savings. Education.

Question 4 of 15In a downturn, call clients:
Show answer

Answer: First. Proactive.

Question 5 of 15The Series 65 is:
Show answer

Answer: An adviser license exam. License.

Question 6 of 15Which term matches this definition: “Workplace retirement plan.”
Show answer

Answer: 401(k). 401(k): Workplace retirement plan.

Question 7 of 15What does “CFP” mean?
Show answer

Answer: Certified Financial Planner.. CFP: Certified Financial Planner.

Question 8 of 15Which term matches this definition: “Individual retirement account.”
Show answer

Answer: IRA. IRA: Individual retirement account.

Question 9 of 15What does “Estate plan” mean?
Show answer

Answer: Plan for assets after death.. Estate plan: Plan for assets after death.

Question 10 of 15Which term matches this definition: “Fund tracking a market index.”
Show answer

Answer: Index fund. Index fund: Fund tracking a market index.

Question 11 of 15What does “Asset allocation” mean?
Show answer

Answer: Mix of investments.. Asset allocation: Mix of investments.

Question 12 of 15Which term matches this definition: “College savings plan.”
Show answer

Answer: 529 plan. 529 plan: College savings plan.

Question 13 of 15What does “Fiduciary” mean?
Show answer

Answer: Must act in the client’s best interest.. Fiduciary: Must act in the client’s best interest.

Question 14 of 15Which term matches this definition: “Required minimum distribution.”
Show answer

Answer: RMD. RMD: Required minimum distribution.

Question 15 of 15What does “Risk tolerance” mean?
Show answer

Answer: Comfort with ups and downs.. Risk tolerance: Comfort with ups and downs.

How to study

View training