HUD Exam Prep Questions And Answers Verified
100% Correct
1.2.11) The following client needs to improve their credit. Match situation with an
appropriate way to improve credit.
B. Molly is a recent college graduate trying to
apply for her first credit card but has been
denied.
1. Review budget to help find funds so that all monthly payments can become current.
2. Make more than the minimum payment to pay down the balances.
3. Apply for a secured credit card to establish history.
4. Notify credit reporting agencies. - ANSWER 3
1.2.11) The following client needs to improve their credit. Match situation with an
appropriate way to improve credit.
C. . Chris sees that a bankruptcy on his credit report actually belongs to his cousin,
who has the same name.
1. Review budget to help find funds so that all monthly payments can become current.
2. Make more than the minimum payment to pay down the balances.
3. Apply for a secured credit card to establish history.
4. Notify credit reporting agencies. - ANSWER 4
1.2.11) The following client needs to improve their credit. Match situation with an
appropriate way to improve credit.
D. Kate's credit report displays several delinquencies, and she has received notices
for repossession of her car.
1. Review budget to help find funds so that all monthly payments can become current.
2. Make more than the minimum payment to pay down the balances.
3. Apply for a secured credit card to establish history.
4. Notify credit reporting agencies. - ANSWER 1
1.2.13) Which complies with fair credit laws?
A. An employer can check a credit report at any time.
B. A vendor can display part of the credit card number on the sales receipt.
C. A credit reporting agency can list information about a collection over eight years old.
D. A creditor can acknowledge a consumer dispute after two months. - ANSWER B
1.2.14) Which federal law protects a consumer's right to dispute a billing error
,associated with his
or her credit card account?
A. Fair and Accurate Credit Transactions Act (FACTA)
B. Fair Credit Reporting Act (FCRA)
C. Fair Credit Billing Act (FCBA) - ANSWER C
1.3.1) Fee charged to invalidate a check before it is cashed.
A. Overdraft Fee
B. Stop Payment Fee
C. NSF Fee
D. Service Fee - ANSWER B
1.3.2) Fee charged by a financial institution for account maintenance.
A. Overdraft Fee
B. Stop Payment Fee
C. NSF Fee
D. Service Fee - ANSWER D
1.3.3) Fee charged when an account does not have enough money to cover a purchase
and the financial institution loans money to complete the payment.
A. Overdraft Fee
B. Stop Payment Fee
C. NSF Fee
D. Service Fee - ANSWER A
1.3.4) Fee charged if there is not enough money in an account to cover a check
payment or other purchase.
A. Overdraft Fee
B. Stop Payment Fee
C. NSF Fee
D. Service Fee - ANSWER C
1.3.5) When advising Patrice, you tell her she needs an account with all of the following
fee structures and features, except:
A. Mobile Banking
B. Free Checks
C. Free Wire Transfers
D. Low Monthly Service Fee - ANSWER C
1.3.7) All of the following arguments will be valuable to share with Jill to help her
understand the importance of an emergency fund, except:
A. Emergency funds can be used to cover living expenses while Jill looks for a new
job, if she is laid off.
,B. Emergency funds placed in a liquid account can be retrieved when needed
without taxes or penalties.
C. Emergency funds will be available to use to purchase an electronic game for her
daughter when Jill finds a great sale.
D. It is ultimately cheaper to pay for emergency expenses from an emergency fund
rather than on credit. - ANSWER C
1.3.8) Which is the most appropriate use of Jill's emergency funds?
A. Contributing to a mutual fund
B. Upgrading a refrigerator
C. Establishing a retirement fund
D. Repairing the transmission on a car - ANSWER D
1.3.9) Indicate the expense best paid for with (A)emergency fund or (B) short-term large
purchase fund.
___ School Trips
___ Birthday Gifts
___ Living Expenses (During Unemployment)
___ Medical Bill
___ Electronics
___ Car Repair - ANSWER Emergency Fund:
-Living Expenses during unemployment
-Medical Bill
-Car Repair
Short-Term Large Purchase
-School Trips
-Birthday Gifts
-Electronics
1.3.10) To explain the importance of establishing a retirement fund to Alexis, you
can present all of the following arguments, except:
A. Her company might "match" a portion of the retirement funds that she contributes.
B. She could benefit from certain tax incentives.
C. She could borrow against the retirement investment if she has an immediate need
for cash.
D. Her investment could grow more if she begins investing earlier. - ANSWER C
1.3.11) Which of the following information would be relevant to ask Richard in the
session to determine if he is eligible for any of the tax credits outlined in this module
1.3?
A. Where does he live?
B. How is he submitting his taxes?
C. Does he spend money on childcare?
, D. What is his credit limit? - ANSWER C
1.3.12) Carlos has two children under the age
of three that attend daycare, makes minimum wage at his job, & has not taken any
courses beyond high school. He is likely eligible for all of the following tax credits,
except:
A. Earned Income Tax Credit (EITC)
B. Child and Dependent Care Credit
C. Educational Credit - ANSWER C
1.4.1) Steps to Protect against Identity Theft
A. Initiate a fraud alert.
B. Shred financial documents.
C. Cancel credit cards and order new bank cards.
D. File a police report.
E. Review bank and credit card statements.
F. Contact the FTC.
G. Safeguard personal identity information - ANSWER B-E-G
1.4.1) Steps to Take after Identity Theft
A. Initiate a fraud alert.
B. Shred financial documents.
C. Cancel credit cards and order new bank cards.
D. File a police report.
E. Review bank and credit card statements.
F. Contact the FTC.
G. Safeguard personal identity information - ANSWER A-C-D-F
1.4.2) All of the following are immediate steps a client should take in the event of
identity theft, except:
A. Create an identity theft report.
B. Contact the insurance company.
C. Order credit reports from the credit reporting agencies.
D. Place a fraud alert. - ANSWER B
1.4.3) In some cases, bankruptcy may be the best option for a client. Which of the
following options would be the least appropriate for a housing counselor to present as
an alternative?
A. Debt management plan (DMP)
B. Household budget adjustment
C. Loan modification
D. Negotiation with creditors
E. Wait seven years for accounts to drop from credit report - ANSWER E
100% Correct
1.2.11) The following client needs to improve their credit. Match situation with an
appropriate way to improve credit.
B. Molly is a recent college graduate trying to
apply for her first credit card but has been
denied.
1. Review budget to help find funds so that all monthly payments can become current.
2. Make more than the minimum payment to pay down the balances.
3. Apply for a secured credit card to establish history.
4. Notify credit reporting agencies. - ANSWER 3
1.2.11) The following client needs to improve their credit. Match situation with an
appropriate way to improve credit.
C. . Chris sees that a bankruptcy on his credit report actually belongs to his cousin,
who has the same name.
1. Review budget to help find funds so that all monthly payments can become current.
2. Make more than the minimum payment to pay down the balances.
3. Apply for a secured credit card to establish history.
4. Notify credit reporting agencies. - ANSWER 4
1.2.11) The following client needs to improve their credit. Match situation with an
appropriate way to improve credit.
D. Kate's credit report displays several delinquencies, and she has received notices
for repossession of her car.
1. Review budget to help find funds so that all monthly payments can become current.
2. Make more than the minimum payment to pay down the balances.
3. Apply for a secured credit card to establish history.
4. Notify credit reporting agencies. - ANSWER 1
1.2.13) Which complies with fair credit laws?
A. An employer can check a credit report at any time.
B. A vendor can display part of the credit card number on the sales receipt.
C. A credit reporting agency can list information about a collection over eight years old.
D. A creditor can acknowledge a consumer dispute after two months. - ANSWER B
1.2.14) Which federal law protects a consumer's right to dispute a billing error
,associated with his
or her credit card account?
A. Fair and Accurate Credit Transactions Act (FACTA)
B. Fair Credit Reporting Act (FCRA)
C. Fair Credit Billing Act (FCBA) - ANSWER C
1.3.1) Fee charged to invalidate a check before it is cashed.
A. Overdraft Fee
B. Stop Payment Fee
C. NSF Fee
D. Service Fee - ANSWER B
1.3.2) Fee charged by a financial institution for account maintenance.
A. Overdraft Fee
B. Stop Payment Fee
C. NSF Fee
D. Service Fee - ANSWER D
1.3.3) Fee charged when an account does not have enough money to cover a purchase
and the financial institution loans money to complete the payment.
A. Overdraft Fee
B. Stop Payment Fee
C. NSF Fee
D. Service Fee - ANSWER A
1.3.4) Fee charged if there is not enough money in an account to cover a check
payment or other purchase.
A. Overdraft Fee
B. Stop Payment Fee
C. NSF Fee
D. Service Fee - ANSWER C
1.3.5) When advising Patrice, you tell her she needs an account with all of the following
fee structures and features, except:
A. Mobile Banking
B. Free Checks
C. Free Wire Transfers
D. Low Monthly Service Fee - ANSWER C
1.3.7) All of the following arguments will be valuable to share with Jill to help her
understand the importance of an emergency fund, except:
A. Emergency funds can be used to cover living expenses while Jill looks for a new
job, if she is laid off.
,B. Emergency funds placed in a liquid account can be retrieved when needed
without taxes or penalties.
C. Emergency funds will be available to use to purchase an electronic game for her
daughter when Jill finds a great sale.
D. It is ultimately cheaper to pay for emergency expenses from an emergency fund
rather than on credit. - ANSWER C
1.3.8) Which is the most appropriate use of Jill's emergency funds?
A. Contributing to a mutual fund
B. Upgrading a refrigerator
C. Establishing a retirement fund
D. Repairing the transmission on a car - ANSWER D
1.3.9) Indicate the expense best paid for with (A)emergency fund or (B) short-term large
purchase fund.
___ School Trips
___ Birthday Gifts
___ Living Expenses (During Unemployment)
___ Medical Bill
___ Electronics
___ Car Repair - ANSWER Emergency Fund:
-Living Expenses during unemployment
-Medical Bill
-Car Repair
Short-Term Large Purchase
-School Trips
-Birthday Gifts
-Electronics
1.3.10) To explain the importance of establishing a retirement fund to Alexis, you
can present all of the following arguments, except:
A. Her company might "match" a portion of the retirement funds that she contributes.
B. She could benefit from certain tax incentives.
C. She could borrow against the retirement investment if she has an immediate need
for cash.
D. Her investment could grow more if she begins investing earlier. - ANSWER C
1.3.11) Which of the following information would be relevant to ask Richard in the
session to determine if he is eligible for any of the tax credits outlined in this module
1.3?
A. Where does he live?
B. How is he submitting his taxes?
C. Does he spend money on childcare?
, D. What is his credit limit? - ANSWER C
1.3.12) Carlos has two children under the age
of three that attend daycare, makes minimum wage at his job, & has not taken any
courses beyond high school. He is likely eligible for all of the following tax credits,
except:
A. Earned Income Tax Credit (EITC)
B. Child and Dependent Care Credit
C. Educational Credit - ANSWER C
1.4.1) Steps to Protect against Identity Theft
A. Initiate a fraud alert.
B. Shred financial documents.
C. Cancel credit cards and order new bank cards.
D. File a police report.
E. Review bank and credit card statements.
F. Contact the FTC.
G. Safeguard personal identity information - ANSWER B-E-G
1.4.1) Steps to Take after Identity Theft
A. Initiate a fraud alert.
B. Shred financial documents.
C. Cancel credit cards and order new bank cards.
D. File a police report.
E. Review bank and credit card statements.
F. Contact the FTC.
G. Safeguard personal identity information - ANSWER A-C-D-F
1.4.2) All of the following are immediate steps a client should take in the event of
identity theft, except:
A. Create an identity theft report.
B. Contact the insurance company.
C. Order credit reports from the credit reporting agencies.
D. Place a fraud alert. - ANSWER B
1.4.3) In some cases, bankruptcy may be the best option for a client. Which of the
following options would be the least appropriate for a housing counselor to present as
an alternative?
A. Debt management plan (DMP)
B. Household budget adjustment
C. Loan modification
D. Negotiation with creditors
E. Wait seven years for accounts to drop from credit report - ANSWER E
