Download FICEP Test Complete Questions And Correct Answers With Verified Solutions 2023 and more Exams Financial Management in PDF only on Docsity!
FICEP Test Complete Questions And Correct Answers With
Verified Solutions 2023
- Money avoidance is the idea that money is evil or : unde- served 2. The idea that money is the way to solve all a member's problems is money : worship
- Money is the member's belief that wealth is tied to self- worth. Money is seen as a member's way to one-up others.: Status
- Money vigilance is a member's perceived need for about their financial matters.: secrecy 5. The ideal spending cycle a member should strive to be in is / /. This group pays themselves first: earn save spend 6. Factors impacting money can include childhood experi- ences, emotional disorders, out of control spending or ignoring the
problem.- : attitudes
- The most basic need members have is needs like food, shelter, and clothing. This is the of the pyramid on Maslow's hierarchy of needs.: physiological, base
- The brain sees things in a logical way while the brain may add color and creativity to the thought process.: left, right
- A right brain person could benefit from a list with while you are sharing information.: illustrations
- The zone of the Johari Window includes things known to others (counselor) but unknown to self (member).: blind 11. The three types of financial counseling are , , and .: productive, preventative, and remedial 12. A counselor should seek to understand all the facts bout a client's cir- cumstances before generating alternatives using both and cues.: verbal, nonverbal 13. There are four steps in the member's change process. In sequential
15. Examining forces for or against a specific action are part of a .: Force field analysis 16. The counseling process contains six steps. In sequential order, they are:
- member data
- Establish clear financial and objectives.
- data.
- a spending, debt repayment and action plan
- plan.
- Monitor, evaluate, and as needed.: collect goals analyze develop impleme nt adjust
- a plan looks at the sources of income and where clients spend their money.: spending
- Cash is the term to define money in and out of a client's budget.:
flow
19. T or F At least 3 recent paycheck stubs should be reviewed when gathering a mem- ber's financial information.: True
- When analyzing expenses it is important to consider a 12 month cycle to take into account which include rising utility costs for additional air in the summer and heat in winter as well as back to school expenses every fall.: seasonal variations
- Options for increasing include working overtime, getting a second job, selling something and setting long term goals: income 22. Accelerating debt repayment can be done by paying more on principal, rolling up payments of the same amount monthly, or paying off debts first.: high interest 23. T or F Since 2010 federal law requires consumers to have a choice to opt-in to overdraft programs.: True 24. loans are the costliest way to handle cash flow problems.: -
27. savings helps members cope with unexpected expenses.- : Emergency
- savings helps members plan for known future expenses.: Set aside
- savings have to be more than just a deposit to a 401(k) plan.: Retirement 30. Spending allowances should be broken down into amounts: - weekly 31. T or F It is important that counselors ask a member to sign a contract to reinforce and stick with the plan they have chosen or it will not work.: False
- One of the ways members can get started saving is to set aside the net amount of a in a savings account and continue to live on what their prior pay.: raise
- savings is a nest egg to help members through a period of lost or reduced income. This is also the middle tier of
the savings pyramid.: Safety net
- When working with members one of the most important things is to be un- derstanding and acknowledge a member's .: Apprehension
- Writing down goals is the first step to having a productive money conversation with families.: individual
- Money management roles are often learned during .: Child- hood 37. T or F It is best to leave children out of the financial counseling sessions and allow the adults to handle all financial conversations with the counselor.: False 38. Disagreement over money is the most frequently cited reason for .: divorce 39. T or F Marital status is not a factor in the credit scoring systems.: True
- When budgeting after a divorce, it is recommended that a member be
44. The three main credit reporting agencies are , , and. Each calculate credit scores individ- ually.: Equifax, Experian, Transunion
- Credit reports contain identifying information, history, public records including collections and credit inquiries in the last 2 years.: payment 46. T or F Income information is included in a credit report: False
- Members can get a free copy of their credit report a year: once
- Credit reporting agencies investigate all claim disputes within days.: 30
- FICO scores range from a low of 300 to a high of .: 850
- is the amount of available credit a member has an dits accounts for 30% of a credit score.: capacity
- The largest influence on a credit score is a member's payment and it accounts for 35% of a credit score.: history
- payments can decrease a credit score up to 70 points by how frequent, recent, and severe the delinquency.: Missed
- Creditors can turn to the courts to place to collect outstanding debts.: judgments
- is the withholding of a member's pay that is submitted to a creditor to pay a debt. Child support is the most common reason for this action.: Garnishment 55. When communicating with a creditor, members should be .: - proactive 56. T or F A "twelve month interest free" offer from a retailer is very beneficial for members with limited income who need extra time to pay their debt.: False
- Credit card fees, risk of identity theft, danger of overspending, and interest charges are of credit cards.: disadvantages
- rates may not be the best deal because of balance transfer fees, length of time for lower rate, credit terms after promotional rate
61. Portions of medical bills that are paid by an insured member include copays, and co-insurance.: deductibles 62. Public programs to help members without private insurance include - the federal insurance program that helps with medical costs and CHIP - the Children's health insurance program.: Medicaid 63. The rule of thirds refers to funding a college education from three sources. The first part is the member of the family's , a course that does not require repayment is and scholarships, and the final third is .: savings, grants, loans
- is an acronym for a universally used federal document that helps determine if a student is eligible for various types of financial aid.: FAFSA 65. T or F When a parent takes out a Parent Plus loan, the creditor may begin the repayment schedule prior to the student's graduation.: True
- Student loan merges multiple loans into one loan to
require only one monthly payment however public and private loans may not be able to be merged.: consolidation
- Student loan allows the borrower to seek better interest rates, repayment terms and minimum payment requirements.: re- financing 68. T or F A senior citizen who co-signed a student loan or defaulted on their own loan can have their federal benefits or tax refunds offset or reduced to repay the default: True
- Borrowers may face of a vehicle for missed payments, lack of insurance, and if the car is used in illegal activities.: repossession
- To avoid repossession fees and help create a better relationship with the lender, the debtor can do a of the vehicle.: voluntary surrender 71. When a repossessed vehicle is sold but a balance remains, a loan can be negotiated to pay the balance to help minimize
or even through a mortgage for those over age 62.: loans, reverse
- Household goods can be seized if they are used as in a "purchase money security interest agreement.": collateral
- A is an action by a creditor to recover debt that was secured by a real estate purchase whereas a is an action a landlord may use to satisfy unpaid rent.: foreclosure, eviction
- Chapter bankruptcy is called a straight bankruptcy because it dis- charges all allowable debts by law but leaves the debtor with no assets.: 7
- Chapter bankruptcy is called wage earner bankruptcy be- cause debts are repaid over 3-5 years in a court approved repayment plan.: 13 79. T or F Chapter 7 bankruptcy remains on a credit record indefinitely.: False
- If a credit union uses then all debts at that credit union are now secured by the collateral listed on any secured agree-
ment, making those goods subject to seizure in debts at that credit union.:
- Post-bankruptcy strategies should begin with a financial to determine what caused the bankruptcy to avoid repeating habits and estab- lishing a realistic budget.: assessment
- loans are designed to help establish credit over time, usually 12-24 months with small loan amounts up to $2500.: Credit-Builder
- occurs when a criminal obtains personal information to use without permission.: Identity Theft 84. Primary sources of data for identity thieves include cards, driver's license, tax returns and medical insurance cards.: social security
- Opting out of credit card offers will help stop identity theft: pre-screened
- Lack of a lock icon, misspelled words, altered logos and requests for personal information are all clues a website is .: fraudulent
- Withdrawing large sums of and avoiding conversations are warning signs of scams: cash
- abuse is any known, intentional or negligent act by a caregiver or other person that causes harm.: Elder 91. T or F The primary reason elders are an attractive target for financial exploitation is because they typically have excess disposable income.: False
- Basic principles of include saving now, living below means, diversifying investments, thinking long term, and understanding bro- kerage fees.: retirement 93. T or F Social Security was designed as a supplement to income to help with basic needs, not as an income replacement.: True
- a plan builds retirement savings by employees deferring tax on some income through contribution into this separate account that may also include a match by their employer.: 401k
- a IRA is built up using post-tax dollar contributions. Funds are accessible after age 59 1/2 but loans against it prior to that age are not allowed.: Roth
- Estate planning includes creating a inventory of valuable items and a inventory of all income and debts: personal, financial
- A is a legal document that details how you want your assets distributed after death: will
- There are four types of powers of attorney: general, durable, limited, and springing
- a document that authorizes another person to make medical decisions and ensure wishes are carried out is called a power of attorney:
- is the process to prove the validity of a deceased person's will.: Probate 101. T or F If an account is payable on death (POD) the funds are transferred or paid
