CSI FP2 : Financial Planning II (FPII)

Pass FP2 Exam Cram

Exam Code: FP2

Exam Name: Financial Planning II (FPII)

Updated: Oct 08, 2026

Q & A: 62 Questions and Answers

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CSI Financial Planning II (FPII) Sample Questions:
Question #1

Hannah would like to replace her current vehicle and is considering leasing instead of financing. Hannah commutes a considerable distance from outside the city each day for her work. She thinks leasing would allow her to always have a newer and more reliable vehicle. What is an important factor for Hannah to consider before making her decision?

  • A. The payments would be higher relative to financing.
  • B. Mileage limits may add extra costs for her at the end of the lease.
  • C. She would require a larger down payment than if financing.
  • D. The lease company covers all scheduled maintenance reducing her costs.
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Correct Answer: B  🗳️

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Question #2

Roy gifted his nephew Charles, age 16, shares for his birthday. The managed portfolio will generate both dividends, and capital gains and losses. What will be Roy's future tax implications, with respect to this transfer, until Charles reaches the age of majority?

  • A. Dividend income is attributed to Roy.
  • B. No gains, losses or income are attributed to Roy.
  • C. Capital losses are attributed to Roy.
  • D. Capital gains are attributed to Roy.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #3

What is the maximum of the payor spouse's net income that may be deducted to fulfil child support obligations?

  • A. 60%.
  • B. 40%.
  • C. 33%.
  • D. 50%.
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Correct Answer: D  🗳️

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Question #4

What is the tax treatment on disability assistance payments for Registered Disability Savings Plans?

  • A. Disability assistance payments are taxed on the grant and income earned portions.
  • B. Disability assistance payments are not taxable income.
  • C. Disability assistance payments are fully taxable based in the hands of the recipient.
  • D. Disability assistance payments reduce government-funded disability benefits and tax credits.
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Correct Answer: A  🗳️

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Question #5

Samuel bought a permanent life insurance policy many years ago. The policy now has a cash value of
$40,000. Samuel is recently widowed and has two minor children that he supports. Since his wife passed away, he finds himself struggling to pay the bills, however he still needs the same death benefit and permanent life insurance. Considering his personal and financial situation, what would be the best non- forfeiture option to exercise on Samuel's policy to meet his needs?

  • A. Reduced paid-up insurance.
  • B. Extended term insurance.
  • C. Automatic premium loan.
  • D. Cash surrender.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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