Updated FiCEP Test - Questions and Answer, Summer 2024

Updated FiCEP Test - Questions and Answer, Summer 2024 Money avoidance is the idea that money is evil or ______________ Undeserved The idea that money is the way to solve all a member's problems is money ______________ ...

Updated FiCEP Test - Questions and Answer, Summer 2024 Money avoidance is the idea that money is evil or ______________ Undeserved 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 The ideal spending cycle a member should strive to be in is _________ / _______________ / ____________. This group pays themselves first earn save spend Factors impacting money _____________ can include childhood experiences, 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 The three types of financial counseling are ____________, _______________, and ____________. productive, preventative, and remedial A counselor should seek to understand all the facts bout a client's circumstances before generating alternatives using both _____________ and _______________ cues. verbal, nonverbal There are four steps in the member's change process. In sequential order they are: 1. Recognizing the _________ for change. 2. Gather ___________ and introduce new ideas. 3. ______________ plan as needed. 4. Make _____________ a part of the member's habits. Need information revise changes Help members prioritize essentials so they spend on ___________ instead of ____________. needs, wants Examining forces for or against a specific action are part of a _____________ ______________ _____________________. Force field analysis The counseling process contains six steps. In sequential order, they are: 1. ____________ member data 2. Establish clear financial _____________ and objectives. 3. _________________ data. 4. _____________ a spending, debt repayment and action plan 5. _______________ plan. 6. Monitor, evaluate, and ______________ as needed. collect goals analyze develop implement 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 T or F At least 3 recent paycheck stubs should be reviewed when gathering a member'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 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 T or F Since 2010 federal law requires consumers to have a choice to opt-in to overdraft programs. True ____________ loans are the costliest way to handle cash flow problems. Payday When planning a trip, choose the vehicle that gives the best ___________ for that trip. Mileage Secure vehicle financing for a vehicle ____________ you shop and consider how much you can afford for the vehicle plus insurance and upkeep. Before _____________ 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 Spending allowances should be broken down into __________ amounts weekly 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 understanding 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 ______________. Childhood 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 Disagreement over money is the most frequently cited reason for ____________. Divorce 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 conservative and choose ___________ that is less expensive that one can afford until they have a better understanding on their new financial status. Housing A challenge of self-employment includes maintaining a reliable source of income and preparing for ______________ fluctuations in income Seasonal Small businesses can acquire __________ from lines of credit, credit cards, personal loans and savings Capital Paying bills ________ ____________ is the most important thing members can do to improve credit rating on time The three main credit reporting agencies are ____________, ______________, and _______________. Each calculate credit scores individually. Equifax, Experian, Transunion Credit reports contain identifying information, __________ history, public records including collections and credit inquiries in the last 2 years. Payment 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 When communicating with a creditor, members should be ___________. Proactive 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 expires, and annual fees Teaser The __________ __________ provides protection from arbitrary interest rate increases and no penalty for paying on time during a grace period among other benefits. card act T or F After the death of a debtor, past due medical bills are paid before heirs receive their inheritance True Portions of medical bills that are paid by an insured member include _____________ copays, and co-insurance. Deductibles 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 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 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 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 When a repossessed vehicle is sold but a balance remains, a ______________ loan can be negotiated to pay the balance to help minimize negative credit reporting or garnishment. Workout An advantage to owning a home is building ___________. Equity Homeowners can earn _____________ with their insurer by having multiple policies and products, installing home security systems, and having smoke detectors. Discounts To consolidate existing debt a member can borrow on their home's equity through multiple methods which are home equity _________ or line of credit 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