A Designated Financial Planner Has Had at Least Two Years

question 28

True/False

A designated financial planner has had at least two years of training in securities, insurance, taxes, real estate, and estate planning and has passed a rigorous examination.

---

Definitions:

Compensating Balance

A minimum bank account balance that a borrower agrees to maintain with a lender as part of the terms of a loan.

Rate of Interest

The percentage of a sum of money charged for its use, typically expressed as an annual percentage.

Equity Financing

The method of raising capital through the sale of shares in a company, thereby granting shareholders ownership interests.

Five C's of Credit

are criteria that lenders use to evaluate the creditworthiness of a borrower: character, capacity, capital, collateral, and conditions.