Foundations of Money

KNOWLEDGE EXPECTED OF: QAFP® Professionals

Highest Knowledge Level: Awareness

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Define the system that secures the modern money supply.

Open Banking

  • Define open banking
  • Identify how open banking works to facilitate the sharing of financial data between financial institutions.
  • Identify potential risks associated with open banking, such as:
    • Risks to privacy of consumer financial data, including:
      • Malicious applications
      • Data breaches
      • Misuse of information and data
    • Liability to financial institutions
    • Increased costs resulting from consolidation

Blockchain

  • Define a blockchain
  • Identify the purpose for which a blockchain may be used

Digital Currency

  • Define digital currency
  • Identify types of digital currency, such as:
    • Cryptocurrencies
    • Virtual currencies
    • Central bank digital currencies
  • Identify the advantages and disadvantages of digital currency
  • Identify how digital currency is regulated in Canada

    KNOWLEDGE EXPECTED OF: CFP® Professionals

    Highest Knowledge Level: Understanding

    Knowledge Levels and Associated Verbs


    Awareness
    The state of being aware that something exists / to have familiarity with a particular activity or subject
    Understanding
    To comprehend the general relationship of particulars / to have an expertise with how something works
    Application
    Ability to put information to use / to use knowledge for relevant, practical purposes
    Evaluation
    To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
    Define
    To state exactly the meaning of
    Identify
    To be aware of / to recognize and correctly name / to locate an appropriate resource
    Explain
    To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
    Determine
    To ascertain / to come to a decision, such as by investigation or reasoning
    Compare
    To note the similarities and differences between two or more things
    Estimate
    To determine an approximate value for
    Calculate
    To find the value using mathematics
    Convert
    To change from one form or purpose to another
    Evaluate
    To reach a conclusion or make a through careful study
    Interpret
    To give the meaning of / to construe or understand / to translate orally

    Hold cursor over or click on each term to read its definition.

    Open Banking

    • Define open banking
    • Identify how open banking works to facilitate the sharing of financial data between financial institutions.
    • Identify potential risks associated with open banking, such as:
      • Risks to privacy of consumer financial data, including:
        • Malicious applications
        • Data breaches
        • Misuse of information and data
      • Liability to financial institutions
      • Increased costs resulting from consolidation

    Blockchain

    • Define a blockchain
    • Identify the purpose for which a blockchain may be used

    Digital Currency

    • Define digital currency
    • Identify types of digital currency, such as:
      • Cryptocurrencies
      • Virtual currencies
      • Central bank digital currencies
    • Identify how digital currency is regulated in Canada
    Additional Knowledge Expected of CFP Professionals
    • Explain the system that secures the modern money supply.

    Digital Currency

    • Explain the advantages and disadvantages of digital currency
    • Identify the tax treatment of digital currency transactions in Canada
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