n NISM Certifications
NSM General NISM
Medium

What is the primary purpose of financial planning for clients?

Practice question from Test Your Knowledge — bank. The correct answer is highlighted below with a full explanation.

Options

  1. To create a comprehensive plan to achieve their financial goals

    Correct answer

  2. B

    To focus only on investment management

  3. C

    To avoid paying taxes

  4. D

    To minimize income

Why this is the answer

Financial planning involves setting goals and developing strategies covering income, expenses, investments, and risks to meet clients' objectives.

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