HUD Certification Exam: 1. Financial Management Test
Questions And Answers Verified 100% Correct
Four steps of asset building - ANSWER 1. Choose the right bank or credit union
account.
2. Build savings for emergencies and large purchase.
3. Invest for retirement.
4. Take advantage of tax credits
Account maintenance fee - ANSWER An amount of money that a bank's customers
must pay to have a checking or savings account unless they meet another requirement,
such as a certain balance in their account.
Check Purchasing Fee - ANSWER Fee charged when a client purchases checks.
Money Order and Cashier's Check Fee - ANSWER Fee charged when a client obtains
a money order or cashier's check. It can be a fat fee or a percentage of the payment
amount.
overdraft fee - ANSWER Fee charged when an account does not have enough money
to cover a purchase and the fnancial insttuton loans money to complete the payment.
This creates a negatve loan to repay, and interest will be charged on the balance.
Overdraft protection transfer fee - ANSWER Fee charged when an account with
overdraft protection does not have enough money to cover a purchase and funds are
transferred from another linked account to cover it
Stop Payment Fee - ANSWER Fee charged to stop payment on a check before the
check is cashed. Clients may not want a check to be cashed when they are suspicious
of a scam, have lost a check, or have realized that there are insufficient funds in their
account
Non-Sufficient Funds Fee (NSF Fee) - ANSWER A non-sufficient funds fee, or NSF
fee, also referred to as a returned item fee, is charged if there is not enough money in
an account to cover a check payment or other purchase. In addition to a fee, the
returned item (or bounced check) may result in additional charges from the creditor.
ATM Transactions Limit/Check-Writing Limit Fee - ANSWER A physical location of a
financial institution, where an account holder can deposit or withdraw money in person.
Branch Location Access - ANSWER Fee charged when an account does not have
enough money to cover a purchase and the financial institution loans money to
, complete the payment. This creates a negative loan to repay, and interest will be
charged on the balance.
ATM Availability - ANSWER Automated Teller Machine, a computerized system to
withdraw cash or make deposits without physically entering a financial institution.
Clients who use an ATM outside their financial network risk surcharge fees from their
own financial institution as well as from the outside ATM network. However, some
banks may waive either or both of these fees
Online banking and bill pay - ANSWER Service that allows customers to conduct
banking actvites on the Internet, such as funds transfer or account review. Most banks
with physical branch locatons ofer some products through online banking. Other banks
are online-only, without physical branch locatons, and ofer all traditonal services online.
Bill Pay is a widely used online service that allows customers to pay bills via electronic
check or a check sent directly from the bank.
Mobile Banking - ANSWER Allows clients to utlize banking services with mobile
technology. Services ofen ofered in mobile banking include a view of up-to-date
transactons, fund transfers, or remote check deposits.
Telephone Customer Service - ANSWER Assistance provided by the fnancial insttuton
over the phone to help customers with banking complicatons
Types of financial emergencies that can affect a client's future purchase of a home -
ANSWER Medical Bills
Home Appliance Replacements
Car Repairs
Living Expenses while unemployed
Features of Emergency Fund Accounts - ANSWER Liquid
Direct Deposit/Automatic Transfer Available
Limited Accessibility
Large Purchase Savings Account purchase examples - ANSWER Birthday presents
Children's School expenses
Family Computer
Large Purchase Savings Account Features - ANSWER Limited Accessibility
Good Returns
Good Account Types for Emergency Funds - ANSWER Interest-bearing savings
accounts
Money Market Accounts
Questions And Answers Verified 100% Correct
Four steps of asset building - ANSWER 1. Choose the right bank or credit union
account.
2. Build savings for emergencies and large purchase.
3. Invest for retirement.
4. Take advantage of tax credits
Account maintenance fee - ANSWER An amount of money that a bank's customers
must pay to have a checking or savings account unless they meet another requirement,
such as a certain balance in their account.
Check Purchasing Fee - ANSWER Fee charged when a client purchases checks.
Money Order and Cashier's Check Fee - ANSWER Fee charged when a client obtains
a money order or cashier's check. It can be a fat fee or a percentage of the payment
amount.
overdraft fee - ANSWER Fee charged when an account does not have enough money
to cover a purchase and the fnancial insttuton loans money to complete the payment.
This creates a negatve loan to repay, and interest will be charged on the balance.
Overdraft protection transfer fee - ANSWER Fee charged when an account with
overdraft protection does not have enough money to cover a purchase and funds are
transferred from another linked account to cover it
Stop Payment Fee - ANSWER Fee charged to stop payment on a check before the
check is cashed. Clients may not want a check to be cashed when they are suspicious
of a scam, have lost a check, or have realized that there are insufficient funds in their
account
Non-Sufficient Funds Fee (NSF Fee) - ANSWER A non-sufficient funds fee, or NSF
fee, also referred to as a returned item fee, is charged if there is not enough money in
an account to cover a check payment or other purchase. In addition to a fee, the
returned item (or bounced check) may result in additional charges from the creditor.
ATM Transactions Limit/Check-Writing Limit Fee - ANSWER A physical location of a
financial institution, where an account holder can deposit or withdraw money in person.
Branch Location Access - ANSWER Fee charged when an account does not have
enough money to cover a purchase and the financial institution loans money to
, complete the payment. This creates a negative loan to repay, and interest will be
charged on the balance.
ATM Availability - ANSWER Automated Teller Machine, a computerized system to
withdraw cash or make deposits without physically entering a financial institution.
Clients who use an ATM outside their financial network risk surcharge fees from their
own financial institution as well as from the outside ATM network. However, some
banks may waive either or both of these fees
Online banking and bill pay - ANSWER Service that allows customers to conduct
banking actvites on the Internet, such as funds transfer or account review. Most banks
with physical branch locatons ofer some products through online banking. Other banks
are online-only, without physical branch locatons, and ofer all traditonal services online.
Bill Pay is a widely used online service that allows customers to pay bills via electronic
check or a check sent directly from the bank.
Mobile Banking - ANSWER Allows clients to utlize banking services with mobile
technology. Services ofen ofered in mobile banking include a view of up-to-date
transactons, fund transfers, or remote check deposits.
Telephone Customer Service - ANSWER Assistance provided by the fnancial insttuton
over the phone to help customers with banking complicatons
Types of financial emergencies that can affect a client's future purchase of a home -
ANSWER Medical Bills
Home Appliance Replacements
Car Repairs
Living Expenses while unemployed
Features of Emergency Fund Accounts - ANSWER Liquid
Direct Deposit/Automatic Transfer Available
Limited Accessibility
Large Purchase Savings Account purchase examples - ANSWER Birthday presents
Children's School expenses
Family Computer
Large Purchase Savings Account Features - ANSWER Limited Accessibility
Good Returns
Good Account Types for Emergency Funds - ANSWER Interest-bearing savings
accounts
Money Market Accounts
