CFED Practice Exam UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Which of the following represent reasons for using gift giving strategies?
a. It's a way to reduce probate costs.
b. A gift creates certainty and avoids the unknown.
c. Millions of dollars in estate tax savings is possible.
d. A lifetime gift is private.
1. a and d only
2. a, b, d only
3. b and c only
4. All of the above are true
5. None of the above is true - CORRECT ANSWER 4. All of the above are true
Which of the following statements is incorrect statement regarding debt management?
1. Using a ledger can be an effective way to keep track of expenses.
2. A primary purpose of budgeting is to increase savings.
Using more credit cards makes you less susceptible to fraud because you spread the risk.
4. Debit cards don't have the same protections from unauthorized use as credit cards.
5. Getting a copy of your credit report is a good idea. - CORRECT ANSWER 3. Using more
credit cards makes you less susceptible to fraud because you spread the risk.
All of the following are good methods for finding company contacts except:
1. Spouses of employees who come to your classes.
2. Referrals from HR professionals to other HR professionals.
3. Referrals from existing clients.
4. Referrals from other vendors/providers.
,5. Paying a commission to HR professionals for leads. - CORRECT ANSWER 5. Paying a
commission to HR professionals for leads
All of the following represent the risk management process except:
1. Less concern about planning
2. Identify potential risks
3. Monitor results
4. Examine alternative solutions
5. Decide which solution to use - CORRECT ANSWER 1. Less concern about planning
Regarding Medicaid; the prospective period during which an applicant must spend down his/her
income or resources is called the:
1. Spend-down period
2. Medicaid eligibility period
3. Expense appropriations period
4. Budget period
5. Income and asset reduction period - CORRECT ANSWER 1. Spend-down period
Which of the following is true regarding the Government's role in financial literacy?
1. Partnerships between the Government and non-profits will convolute and exacerbate the financial
literacy movement.
2. The Government will mandate financial education under the Pension Protection Act.
3. The 1974 ERISA Act encourages companies to provide financial education for their employees.
4. The federal Government should encourage private and public sectors alike to promote financial
literacy, while staying out of it directly.
5. The Government should encourage one primary system for delivering financial education. -
CORRECT ANSWER 3. The 1974 ERISA Act encourages companies to provide financial
education for their employees
, Which of the following Total Life Planning segments, refers to how a person is valued by themselves?
1. Spiritual balance
2. Mental health
3. Identity fulfillment
4. Personal assessment
5. None of these is correct - CORRECT ANSWER 3. Identity fulfillment
Which of the following is/are true regarding long-term care issues?
a. Medicare does not cover the needs of long-term care.
b. Long-term care deals with the activities of daily living.
c. Medicaid is a state and federal government program that may pay for certain health services.
d. Long-term care services may include both medical and non-medical care.
1. a and b
2. b and d
3. a, b, and c
4. b, c, and d
5. a, b, c, and d - CORRECT ANSWER 5. a, b, c, and d
Which of the following examples of financial distress may affect the employer's bottom line?
a. Substance abuse
b. Loss of security clearance
c. Lowered employee morale
d. Greater use of some employer assistance programs
e. Thefts from employees
1. a and c only
2. b and d only
3. b, d, and e only
4. a, c, and e only
QUESTIONS AND CORRECT ANSWERS
Which of the following represent reasons for using gift giving strategies?
a. It's a way to reduce probate costs.
b. A gift creates certainty and avoids the unknown.
c. Millions of dollars in estate tax savings is possible.
d. A lifetime gift is private.
1. a and d only
2. a, b, d only
3. b and c only
4. All of the above are true
5. None of the above is true - CORRECT ANSWER 4. All of the above are true
Which of the following statements is incorrect statement regarding debt management?
1. Using a ledger can be an effective way to keep track of expenses.
2. A primary purpose of budgeting is to increase savings.
Using more credit cards makes you less susceptible to fraud because you spread the risk.
4. Debit cards don't have the same protections from unauthorized use as credit cards.
5. Getting a copy of your credit report is a good idea. - CORRECT ANSWER 3. Using more
credit cards makes you less susceptible to fraud because you spread the risk.
All of the following are good methods for finding company contacts except:
1. Spouses of employees who come to your classes.
2. Referrals from HR professionals to other HR professionals.
3. Referrals from existing clients.
4. Referrals from other vendors/providers.
,5. Paying a commission to HR professionals for leads. - CORRECT ANSWER 5. Paying a
commission to HR professionals for leads
All of the following represent the risk management process except:
1. Less concern about planning
2. Identify potential risks
3. Monitor results
4. Examine alternative solutions
5. Decide which solution to use - CORRECT ANSWER 1. Less concern about planning
Regarding Medicaid; the prospective period during which an applicant must spend down his/her
income or resources is called the:
1. Spend-down period
2. Medicaid eligibility period
3. Expense appropriations period
4. Budget period
5. Income and asset reduction period - CORRECT ANSWER 1. Spend-down period
Which of the following is true regarding the Government's role in financial literacy?
1. Partnerships between the Government and non-profits will convolute and exacerbate the financial
literacy movement.
2. The Government will mandate financial education under the Pension Protection Act.
3. The 1974 ERISA Act encourages companies to provide financial education for their employees.
4. The federal Government should encourage private and public sectors alike to promote financial
literacy, while staying out of it directly.
5. The Government should encourage one primary system for delivering financial education. -
CORRECT ANSWER 3. The 1974 ERISA Act encourages companies to provide financial
education for their employees
, Which of the following Total Life Planning segments, refers to how a person is valued by themselves?
1. Spiritual balance
2. Mental health
3. Identity fulfillment
4. Personal assessment
5. None of these is correct - CORRECT ANSWER 3. Identity fulfillment
Which of the following is/are true regarding long-term care issues?
a. Medicare does not cover the needs of long-term care.
b. Long-term care deals with the activities of daily living.
c. Medicaid is a state and federal government program that may pay for certain health services.
d. Long-term care services may include both medical and non-medical care.
1. a and b
2. b and d
3. a, b, and c
4. b, c, and d
5. a, b, c, and d - CORRECT ANSWER 5. a, b, c, and d
Which of the following examples of financial distress may affect the employer's bottom line?
a. Substance abuse
b. Loss of security clearance
c. Lowered employee morale
d. Greater use of some employer assistance programs
e. Thefts from employees
1. a and c only
2. b and d only
3. b, d, and e only
4. a, c, and e only
