HUD EXAM - FINANCIAL MANAGEMENT
EXAM QUESTIONS WITH COMPLETE
SOLUTIONS
, All of the following would help a counselor develop a realistic household budget, except:
A. Payment information for a paid-off car
B. Amount spent on groceries
C. Rent payment information
D. Monthly cable bill - ANSWERAnswer: A
Since the car is paid off, the expense does not need to be included in the new budget.
All of the following are reasons why it is important for a client to track income and
expenses before finalizing a budget, except:
A. It helps show clients that they spend less on some expenses than they think.
B. It helps identify spending habits
C. It helps show clients that their spending and expenses are out of control.
D. It helps define realistic and attainable goals and timelines. - ANSWERAnswer: C.
Clients may find that their spending and expenses are out of control. However, the
purpose of tracking is to inform realistic budget preparation, not to condone or condemn
a client's judgement.
Which of the following is a "want" and not a "need"
A. Health care premium
B. Car insurance
C. Gym Membership
D. Rent - ANSWERAnswer: C. Gym Membership.
What information is used in determining a budget (give 4) - ANSWERPay Stub, Bank
Statements, Utility Bills, and Social Security Award Letter.
Ray's commute on the bus takes over an hour, so he wants to buy a car as soon as
possible, but he has poor credit and cannot obtain a loan right now. He thinks he can
find a reliable car for about $2,000 and has about 20% of the total in the bank from his
tax refund. if Ray's goal is to buy a car within 8 months, what is the minimum amount he
needs to save each month? - ANSWERRay has 20% of $2,000 saved, or $400, so he
needs at lease $1,600 more to reach his goal. If he saves for 8 months, he will need to
save $200 each month.
Which section of a credit report will contain employer details? - ANSWERPersonal
Information
Which section of a credit report will contain information about a student loan -
ANSWERAccount Information
Which section of a credit report will contain court information such as bankruptcy? -
ANSWERPublic Records
EXAM QUESTIONS WITH COMPLETE
SOLUTIONS
, All of the following would help a counselor develop a realistic household budget, except:
A. Payment information for a paid-off car
B. Amount spent on groceries
C. Rent payment information
D. Monthly cable bill - ANSWERAnswer: A
Since the car is paid off, the expense does not need to be included in the new budget.
All of the following are reasons why it is important for a client to track income and
expenses before finalizing a budget, except:
A. It helps show clients that they spend less on some expenses than they think.
B. It helps identify spending habits
C. It helps show clients that their spending and expenses are out of control.
D. It helps define realistic and attainable goals and timelines. - ANSWERAnswer: C.
Clients may find that their spending and expenses are out of control. However, the
purpose of tracking is to inform realistic budget preparation, not to condone or condemn
a client's judgement.
Which of the following is a "want" and not a "need"
A. Health care premium
B. Car insurance
C. Gym Membership
D. Rent - ANSWERAnswer: C. Gym Membership.
What information is used in determining a budget (give 4) - ANSWERPay Stub, Bank
Statements, Utility Bills, and Social Security Award Letter.
Ray's commute on the bus takes over an hour, so he wants to buy a car as soon as
possible, but he has poor credit and cannot obtain a loan right now. He thinks he can
find a reliable car for about $2,000 and has about 20% of the total in the bank from his
tax refund. if Ray's goal is to buy a car within 8 months, what is the minimum amount he
needs to save each month? - ANSWERRay has 20% of $2,000 saved, or $400, so he
needs at lease $1,600 more to reach his goal. If he saves for 8 months, he will need to
save $200 each month.
Which section of a credit report will contain employer details? - ANSWERPersonal
Information
Which section of a credit report will contain information about a student loan -
ANSWERAccount Information
Which section of a credit report will contain court information such as bankruptcy? -
ANSWERPublic Records
