2024/2025 FiCEP Exam - Questions with 100% Correct Answers Which cycle describes members who are just surviving and living paycheck to paycheck? a. Earn
... [Show More] / spend / earn / spend b. Earn / spend / borrow / spend c. Earn / spend / save d. Earn / borrow / spend / save Financial counselors who don't use what they know about hemispheric thinking, may fall into the trap of: a. Assuming the member will succeed if they work with the counsellor b. Asking too many questions c. Telling the member what they should do d. Presenting information to a member in a manner that might not be the best way to communicate Using a hard approach, rather than a soft approach, with members: a. Reminds members they are in control b. Communicates in an orderly, specific and straight-forward way c. Correlates with the right side of the brain d. Offers possibilities and suggestions The Johari Window describes four zones. When working with a member, the Hidden Zone represents: a. Information that is known to the counselor and the member b. Information that is known to the counselor and not the member c. Information that is known to the member and not the counselor d. Information that is not known to either the member or the counselor Which type of counseling should a counselor use when a member is preparing for a large purchase? a. Preventive b. Procedural c. Productive d. Remedial Which of the following is NOT a counseling element? a. Budget b. Credit c. Debt d. Savings Which of the following is a closed-ended question? a. Tell me more about that. b. Do you plan to move forward? c. What was your deciding factor? d. What is causing the hesitation? An example of pacing is when a counselor: a. wears the same type of clothing as the member. b. matches the member's tone. c. matches the member's energy level. d. agrees with everything the member says. How many steps are in the change process? a. 3 b. 4 c. 5 d. 6 Which of the following decision-making tools is best to use when considering all forces in favor of or against a plan so a decision can be made? a. Essential obligations b. Cost-benefit analysis c. Reframing d. Force-field analysis Which of the following is the first step of the counseling process? a. Analyze data b. Develop a spending plan c. Collect member data d. Establish goals and objectives It is best to divide a budget into which cycle? a. Daily b. Monthly c. Quarterly d. Annually Which of following provides a credit history including debt repayment practices for an individual? a. Cash flow b. Net worth c. Debt ratio d. Credit report When discussing a member's budget analysis, build in assumptions and adjustments to make sure the process allows for a... a. 12-month cycle. b. 24-month cycle. c. 36-month cycle. d. 48-month cycle Which of the following is NOT a step that will reduce debt? a. Set goals b. Stop creating debt c. Borrow money from payday lenders d. Consolidate credit cards Increasing a monthly payment beyond the minimum required by the credit issuer is known as: a. paying more on the principal. b. rolling up the payment. c. paying the high-interest debts first. d. paying the largest debt first. One disadvantage of leasing a car is: a. equity builds every month. b. inconsistent monthly payments. c. locked into a contract. d. no factory warranty When determining if a vehicle is affordable, which of the following is NOT important to consider? a. Purchase price b. Maintenance c. Insurance d. Ability to pay online Which type of savings helps one cope when the unthinkable occurs? a. Set-aside b. Retirement c. Emergency d. Holiday A good action plan includes: a. the counselor completing a budget and giving it to the member. b. a list of steps and timeline for the member to complete. c. a list of family members to contact. d. the counselor making creditor calls Which of the following is not an example of ways members may start saving? a. After a loan is paid off, deposit the old loan payment amount to savings b. Increase living standard expenses with each new raise c. Depositing bonuses or tax refunds to savings d. Have a portion of each paycheck directly deposited to a savings account "Safety-net savings" is designed to help members: a. Through a period of reduced or lost income. b. Pay for occasional or periodic expenses. c. Reach a long-term goal. d. Sustain income during retirement. One way to overcome a member's objection to financial counseling is to: a. Simply dismiss any negative comments a member makes. b. Speak in a loud tone to reinforce authority as a counselor. c. Refer member to another financial counselor. d. Express confidence in member's ability to address problem. You can help couples and families who have difficulties talking through money issues by doing all of the following except: a. Have each person write down individual goals & then share with each other. b. Discuss individual goals & how members may work together to accomplish them. c. Meet with members separately for financial counseling. d. Agree on a scheduled time to check goal progress and make modifications. Which of the following statements is false regarding the ten steps that can help families change habits? a. Children can be absent from discussions because spending changes will not affect them. b. Parents must present a united front when talking with children about money. c. Recognizing progress with positive feedback can keep everyone focused on the goals. d. Once problem areas are identified, develop strategies to save money. When dealing with credit during a divorce, which of the following is false? a. A divorce decree may specify which party is responsible for repaying which debts. b. If one spouse falls behind on payments of a jointly held account, both parties are responsible. c. Marital status is not a factor in credit scoring systems. d. Late payments on jointly held debts will not be reflected on both credit reports. Seasonal employees must: a. Not be concerned with ebbs and flows in monthly income. b. Plan for times when income is low. c. Avoid overuse of outside resources like food share programs. d. Only worry about current income and not dwell on future shortfalls. When you own your own business, accounts payable is the: a. Amount of money others owe you. b. Money that you anticipate the government will reimburse you. c. Amount of money you owe others. d. Difference between your assets and liabilities Which of the following statements is false? a. Using credit only builds a positive credit history if the lender submits information to a CRA. b. Lenders regularly report on-time and delinquent payments. c. Becoming an authorized user means the user is required to acquire debt. d. Unpaid overdrafts may be reported to CRAs. Your credit report will not include: a. Identification and employment information. b. Income and asset information. c. Payment history. d. Public record information. Identification and employment information includes all except: a. Name. b. Date of birth. c. Spouse's name. d. Race/ethnicity information. Which of the following statements about credit score analysis is false? a. Payment history has the least influence on one's credit score. b. To improve one's capacity, a member needs to pay off debt rather than transferring it. c. The largest single influence on a credit score is an individual's payment history. d. It can be counterproductive to close older, well-established credit lines. Which of the following statements about actions that lower credit scores is false? a. The 3 ways late payments can hurt credit scores are frequency, recent, & severity. b. Maxed-out credit cards may reduce credit scores by as much as 100 points. c. Closed accounts in good standing are usually removed from the credit report within 10 years. d. Inquiries do not impact credits scores. Individuals with high credit scores have: a. History of closing loans soon after opening them. b. High percentage of available revolving credit. c. Many credit cards or loans with balances. d. Low percentage of available revolving credit. Which of the following statements is true? a. A judgment is an arbitrary ruling that settles a lawsuit by defining the obligations of the parties involved. b. A lien is a verbal claim against a specific item owned by a debtor. c. There is a federal law that says wages can be garnished for child support payments. d. A garnishment does not require an employer to withhold a specific amount from an employee's wages to repay debt.. When dealing with creditors/collectors, it's important for members to: a. Be proactive. b. Avoid them altogether. c. Be honest & tell the collector they have no intention of paying. d. Extend the time to pay the collection for as long as possible. Which of the following statements is false? a. Once a collection is paid, the negative history is immediately removed from one's credit report. b. Collection agencies are open to negotiation. c. In some situations, it may be beneficial to settle a debt in collections. d. Members should never agree to an unaffordable payment plan. The amount a cardholder is required to pay each month is the: a. Late fee. b. Annual fee. c. Grace period. d. Minimum payment. Which of the following is an advantage of using a credit card? a. There is not a fee for late payments. b. One's credit score is not impacted by late payments. c. Peace of mind knowing funds are available. d. Identify theft is impossible when using a credit card. Which of the following statements is false regarding tips to avoid credit card problems? a. Avoid using credit cards to finance an unaffordable lifestyle. b. Accept unsolicited increases to credit limit to help maximize borrowing power. c. Pay more than the minimum payment when possible. d. Don't have a high balance when relying on temporary teaser rates Which of the following statements is false?" a. Simply receiving a medical bill does not affect a credit score. b. Paying a medical bill a few days late does not affect a credit score. c. Medical bills affect a credit score if a collection agency is involved. d. If a medical bill is ultimately paid by an insurance company, the CRAs do not have to remove the item from the credit reports. Which of the following statements is true? a. Estate obligations must be paid prior to any inheritance being paid. b. Beneficiaries are a priority in distributions of an estate. c. Surviving family members are always responsible to pay the deceased's medical bills. d. Probate courts cannot decide which estate's assets must be sold. While counseling members, when is the best time to ask if they have medical debt? a. During bankruptcy proceedings. b. During an initial needs assessment. [Show Less]